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Climb Global Solutions hints at further M&A
Distributor shares Q2 progress, with CEO talking of willingness to make strategic investments to expand the business
Efforts to get close to customers and expand the vendor portfolio have delivered for Climb Global Solutions in its second quarter.
The distributor saw net sales increase by 73% to $159.3m, and net income increase by 74% to $6m in the three months ended 30 June.
The net sales improvement was largely down to organic growth with existing and fresh vendors, but there was also a contribution from the acquisition of US player Douglas Stewart Software + Services, which was sealed in July last year.
The channel player has been expanding its vendor roster on both sides of the Atlantic, and that made a difference to the numbers in Q2.
Climb signed deals with the likes of IGEL and Unframe during the quarter to add more security and artificial intelligence (AI) capabilities to the vendor roster.
“We continued to execute on our core initiatives in Q2, resulting in another period of exceptional performance with material increases across all key financial metrics,” said Climb Global Solutions CEO Dale Foster.
“During the quarter, we generated double-digit organic growth by strengthening relationships with key customers, bolstering our line card with new, innovative vendors, and growing our market share in both the US and Europe,” he said.
Potential partners
Speaking on a results webcast, Foster added that the firm continued to identify potential vendors the business could partner with. “In Q2 alone we evaluated 50 potential vendor partnerships and moved forward with just four of them,” he said. “This disciplined approach reflects out commitment to quality over quantity and our focus on delivering differentiated high-impact solutions to drive long-term value across our platform.
Climb started to feature more heavily in UK channel conversations after it picked up Ireland-based distie DataSolutions, which serves both Irish and UK resellers, back in October 2023.
Over the course of the past year, the firm looked to increase the portion of business emanating from EMEA, using both organic and acquisitions as a route to increasing that from the level of around 12% growth that was expected from the region in its 2024 numbers.
Foster said the business was entering its second half in a solid position, and was looking to build on that momentum. “Looking ahead, we will continue to build on the momentum established in the first half of the year, with a clear focus on driving sustainable growth and operational execution,” he said. “With our ERP system now fully implemented, we expect to capture operational efficiencies that will enhance scalability and drive operating leverage across our global platform.”
Foster indicated that the firm was also prepared to continue using M&A as a means of expanding the business. “We also remain focused on identifying strategic acquisition opportunities that can enhance our capabilities and complement our existing footprint,” he said.
Halfway through the year, and it’s clear that those channel players operating in security, cloud and AI have managed to grow despite a challenging economic backdrop.
Climb numbers and executive optimism echo similar soundings from the likes of Exclusive Networks, Westcon-Comstor, Distology and TD Synnex about the growth prospects for 2025.
