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The channel knows all about revenue targets and the motivation they can bring to stir sales teams and focus minds on the corporate strategy.
One of the biggest ambitions a business can set is to get to the one billion revenue mark and indicate to the rest of the market that it is a sizeable operation that can generate the sort of turnover that places it in a different bracket.
Joining the ranks of the one billion plus club is multinational distributor Exclusive Group, which has reached its one billion target as the result of the acquisition of Singapore-based Transition Systems.
Transition operates out of 18 offices across 8 countries, including India, Thailand, Vietnam and Indonesia, and gives Exclusive, which already has its own footprint in Australia and New Zealand more muscle in the APAC region.
Once the turnover of Transition is added to the Group it also takes revenues through the €1bn mark, an ambition the channel player has been moving towards for the last couple of years.
Barrie Desmond, COO at Exclusive Group, said that it would have been on track to have hit the €1bn revenue mark by the middle by the middle of next year but this deal had accelerated the process.
"It's symbolic. At the end of the day you have to have a plan and something to reach. But the destination is not always as important as the journey. we have wanted to get there and to do things as we build a valued distributor model," he said.
Transition was on Exclusive's radar but it was not until the round of funding from Cobepa last May, which provided the distributor with a war chest to go out and add to its acquisitions.
"It is going to represent nearly 30% of the business by the midpoint of this year and plugs the gap between our Dubai and Syndey offices and gives us a much bigger footprint into high growth economies," added Desmond.
The other benefit of growing its presence in the APAC region is that it will remove one of the issues that some rivals had tried to use to beat Exclusive to some contracts that were looking for distribution in that area.
One of the reasons that Transition was identified as an acquisition target was because it shares the same values as Exclusive and as a result it should fit into the overall Group fairly easily.
"We have a good track record of picking our partnerships and it is very much business as usual, even though the name over the door may change," said Desmond.
In response, Jonathan Juay, group managing director of Transition Systems, said that the tie-up with Exclusive would provide plenty of benefits.
“With the resources and support of the Exclusive Group we can remain committed to our value-adding principles, innovate new solutions and services tailored to local market needs, and invest for greater expansion in the future. We are already looking at starting BigTec, Exclusive’s hyperconvergence business unit, into several countries here, and exploring synergies with strategic Exclusive vendors and global SIs," he said.