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Home M&A

‘We’ve been acquired for a reason’ – Varlink CEO on £1.5m sale

Distributor now has 'real direction' and 'big money' behind it, Mike Pullon claims

Doug Woodburn by Doug Woodburn
30 April 2024
in M&A
Mike Pullon, Varlink

Mike Pullon

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Varlink now has a “real direction” and “big money behind us”, its CEO has told IT Channel Oxygen following the distributor’s sale.

Varlink has today been acquired for £1.5m by Poindus Systems, a Taiwanese point of sale terminal manufacturer owned by Taipei-listed giant Compal Electronics.

Ranking 39th in IT Channel Oxygen’s 2023 Top 45 Must-Know UK IT distributors, Varlink distributes brands including Zebra, Sunmi and Newland.

Varlink CEO Mike Pullon said that he had been in contact with Poindus for around four years, with formal discussions beginning last June.

Varlink sales team
The Varlink sales team

“It doesn’t feel like one of those horror stories where people feel themselves being hollowed out from Day One. We’re being acquired for a reason,” Pullon told IT Channel Oxygen

“They value the reputation the brand has in the UK and were very keen that the Varlink name remains on the door.

“Of course there are going to be some slight changes in emphasis, but Poindus are really keen for us to continue what we’ve been doing in developing multi-brand distribution.

“We’ve been particularly good at doing that on the auto ID side of the business, but in EPoS it’s been a little narrow. In mid-range and up, we can absorb more product, and obviously they’d like it to be their brand, so we are taking over responsibility of the distribution to their existing channel in the UK.

“I think the big difference for us is we will now be able to influence what we offer. Now we can say to resellers, ‘tell us what your customers need, tell us what you need’. We’re now part of an organisation that can make that happen.”

“Everybody gets it”

Pullon acknowledged that it has been “more difficult for Varlink to find our way” since the loss of his co-founder Barry Dodd in a tragic accident in 2018. He provided expansion capital when needed.

Varlink office

“Over the years a number of people have knocked on our door – and Poindus have been consistent,” Pullon said.

“Everybody gets it,” Pullon added of the feedback he has received from customers and suppliers today.

“They can see that having a really well-engineered product range complements what we’ve already got, and they see the prospect of being able to influence product and are also intrigued by prospect of some Compal product coming into the product set at some stage.

“When people realise Compal are majority shareholders in Poindus, and Poindus now own us  outright, they can see a line to a very interesting destination.”

Doug Woodburn
Website |  + postsBio

Doug Woodburn is editor of IT Channel Oxygen

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