martinwolf transaction analysis
Insight Direct (UK) Ltd to acquire Inmac Gbmh
- Inmac's Revenue: $120M
- Transaction Value: not disclosed *
*Estimates using MW Scoreboard from the past 12 months, and the median of comparable data on European Supply Chain companies, places the transaction at approximately $24-36M. martinwolf believes it to be on the lower end of that spectrum.
- Insight Enterprises, Inc. (NASDAQ: NSIT) announced yesterday that its European operation, Insight Direct (UK) Ltd, will acquire Inmac Gbmh, a Frankfurt-based, broad portfolio B2B hardware reseller. The transaction is to take place within the next thirty days. Financial details of the arrangement were not disclosed.
- Inmac will provide Insight with a broad European client base as well as hardware technology sales, lifecycle services, marketing and supply chain expertise, especially in higher growth markets such as Germany and the Netherlands.
- This is a revenue addition and cost consolidation opportunity for Insight. Inmac's product salesforce and distribution infrastructure, combined with Insight's global hardware purchasing power, will enable Insight to capture a large share of their European customers IT spend, and better compete as a total solution provider. Currently, 37% of Insight's EMEA sales came from hardware in its most recent quarter, with the balance coming from software and services.
- Furthermore Inmac will provide an inexpensive platform for Insight to jumpstart their hardware product sales outside of the UK, where most of their hardware revenue was concentrated, giving Insight more pan-European coverage. Additionally, Insight UK's stable, long-standing management team makes for low risk integration.
- The Inmac acquisition is the second transaction for Insight in the last six months. This past October, they acquired Ensynch, a Phoenix, AZ Microsoft consulting firm.
- Overall, this acquisition demonstrates the trends towards consolidation and diversification. martinwolf expects that Insight and their peers will continue to make acquisitions to increase both their technical and geographical offerings. The competition in the reseller space is heated, and large players are continuously doing acquisitions to strengthen their positions.
- With continued economic uncertainty in Europe - the euro is near a 16 month low - valuations remain depressed, which provides buying opportunities for North American and Asian buyers.
Please click here to read the press release.
martinwolf was not the adviser in this transaction.
To learn more about this transaction or our firm, contact Tim Mueller at email@example.com or (925) 215-2761.
Based in Silicon Valley, martinwolf is a leading middle market M&A Advisory focused on companies with services-based business models. Since 1997, our team has completed more than 100 transactions in six countries. We are a five-year member of the Merrill Lynch PS Referral Network, and were selected as ICICI Bank's (India's leading private bank) exclusive strategic partner for acquiring U.S. IT companies. martinwolf is a member of FINRA and SIPC. For more information, visit www.martinwolf.com.
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