ALSO has been given the go ahead to complete its acquisition of Westcoast, with analysts suspecting it may soon pull off a copycat move in the US.
The Switzerland-based broadliner this morning announced it expects to complete its acquisition of UK-based Westcoast by 28 February 2025.
This follows the receipt of “all necessary regulatory approvals, including merger clearance without restrictions from the European Commission”.
European powerhouse
The duo announced their intent to combine forces last July.
ALSO is comfortably mainland Europe’s largest homegrown distributor, with 2024 revenues of €10.96bn.
Boasting total revenues of €4.2bn across its UK, French and Irish operations, Westcoast ranked top in IT Channel Oxygen’s recent 50 Must-Know Distributors rundown, meanwhile.
The duo’s combined sales of around €15bn are a smidge below European market leader TD Synnex’s regional tally (its 2024 revenue and gross billings from the region stood at $19.6bn and $25.4bn, respectively).
US next?
ALSO’s move to buy Westcoast came just 18 months after it dipped its toe in the UK water by launching its Cloud Marketplace business here.
So, with ALSO Cloud launching in the US last week, is a transatlantic acquisition on the cards?
In a LinkedIn post yesterday, Canalys Chief Analyst McBain made a “long shot prediction” that ALSO may move to buy a specific US distributor in the next 18 months. Like Westcoast (and several other distributors around the world), the distributor he named uses ALSO’s Cloud Marketplace as its digital platform, McBain stressed (see below).
Talking to IT Channel Oxygen last week, Informa Fellow Brazier characterised ALSO’s US expansion as a “brave” and “exciting” move.
“It allows them to setup all the legal entities, recruit some local staff and get to know the North American executives at the leading vendors. Then, after a couple of years, an acquisition might come onto the radar,” he said.
Alex Smith Vice President & Practice Lead, Channels & Go-to-Market at Futurum Group, agreed that ALSO acquiring into the US is “a logical next step to really expand beyond Europe and compete with TD Synnex and Ingram Micro“.
“There just aren’t many acquisition targets that would move the needle: D&H and Arrow ECS (as a spin out) are really the only options. Perhaps Exclusive Networks too, though its presence in the US is still relatively small. But all would help ALSO expand beyond Europe,” he told IT Channel Oxygen.
“Having said that, I wouldn’t expect anything to materialise for at least two or three years. ALSO is just completing the acquisition of Westcoast, and meanwhile, I don’t know there are selling signals from any of the mentioned companies.”
ALSO itself characterised its US launch as the “first step” in its transatlantic expansion.
“Largest European technology provider”
ALSO and Westcoast’s union had been an “obvious move for a long time”, Brazier told IT Channel Oxygen at the time the deal was announced.
Westcoast’s “experienced” management team will remain in place, ALSO stressed.
“This is an alliance of two highly successful businesses sharing the same mindset of growth,” Westcoast Chairman Joe Hemani said.
“Over the last 42 years our company went from strength to strength and this is how it will remain in the future. The continuity of the business which is paramount for vendors, customers and our team alike is secured with this move. I am excited to play an active role during what I know will be a smooth transition and beyond.”
ALSO Chairman Gustavo Möller-Hergt added: “Together, we will become the largest European technology provider. This provides a solid foundation for sustainable, profitable growth, and both teams are looking forward to unlocking the many opportunities ahead.”
