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SCC has sealed a deal to pick up long-established fellow channel player Vohkus as it looks to bolster its market position.
The deal, the terms of which have mot been disclosed, means that SCC has landed a £100m turnover reseller that has 160 staff and a customer base that has been cultivated over the past 12 years.
The deal is the first since SCC indicated it had a £300m investment programme that would be used to support further growth.
The move to SCC ownership means some moves in Vohkus personnel its co-founder, Ritchie Sharma, deciding to retire from the company. That leaves his other co-founder Frank O’Leary, Lance Forster, Ian Hounsome and Graham Gaut managing the business going forward.
The acquisition will give SCC access to the Vohkus operation in Fareham, helping the firm expand its reach across the UK. The deal also adds more experienced staff to the headcount and gives it the chance to start pitching its wider portfolio to customers.
James Rigby, SCC CEO, said that it was familiar with the business and recognised shared values that would make the acquisition work for both sides.
“Vohkus prides itself on creating long-term trusted relationships with its people and its customers. It was apparent from our first conversation that Vohkus shares our strong entrepreneurial culture, with exceptional customer experiences at the heart of everything it does,” he said.
“The long tenure of Vohkus’s people and the talent it has within its growing services business will add tremendous value to SCC. In return, we can help scale Vohkus as part of the SCC family,” he added.
In response, O’Leary said the time was right for it to become part of the SCC family: “This is a pivotal moment for Vohkus. It represents significant opportunity to strengthen our product business further while significantly expanding our services offerings.
“This will be to the great benefit of our customers, many of which are currently undergoing major IT transformations. It is also a terrific opportunity for our team to be part of a large ecosystem, delivering even more business value to customers,” he added.
Adam Clark, chief revenue officer at SCC, said that there were clear opportunities that could be tapped into: “This deal offers a platform for Vohkus to leverage SCC’s in-house services capability, providing both scale and market-leading capability in support of customers’ complex transformation initiatives. Like SCC, Vohkus has a strong partner eco-system, long-serving staff, and enduring customer relationships. The opportunity to grow together is massive.”
Last November, SCC made it clear that it was planning to flex its financial muscles and get involved with the M&A opportunities out in the channel, establishing a £300m technology investment programme, to target assets across the UK, Spain and France over the next five years.
The decision to share details of the M&A war chest was described as a display of commitment from SCC owners the Rigby family to remain the leading privately owned channel business across Europe.