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Exclusive Group flexes global muscles with US acquisition

The move by Exclusive Group to acquire a Silicon Valley based distributor gives the outfit representation in the US to add to EMEA and APAC

The Exclusive Group has taken steps to be a truly global player with its first major acquisition of a distributor in the US.

The distribution specialist has picked up Silicon Valley based security VAD Fine Tec in a move that will take its revenues for the full year 2017 to around €1.8bn ($2bn).

The two firms have been aware of each other for a while and the acquisition emerged as a serious prospect after Exclusive expanded out of EMEA into APAC.

Olivier Breittmayer, CEO of Exclusive Group, said that as it has expanded Eastwards its vendor partners had started to ask when it would make similar moves on the other side of the Atlantic.

"We have known Fine Tec for a long time as a Fortinet distributor. There is a complimantary culture between the two companies and it made sense to do something together to be a global player," he said.

"Vendors were pushing us a lot after we did the acquisition in APAC and they wanted a global partner so that really pished us to do something in the US," he added.

Fine Tec has been operating for two decades and is a $230m distributor that operates in network security, data integrity and storage solutions, with additional services and training capabilities.  

Exclusive recently appointed Patrick Huth as vice president alliances Americas, and he will be working with the Fine Tec management team to bring new vendors and partners on board.

James Shen, CEO of Big Tec, said that it had been growing its business strongly in the last few years but it recognised it needed to be part of a bigger entity to get to the next level.

"We wanted to expand our business and go from local to global. Exclusive is looking for a North American presence and we are looking for global," he said.

The Fine Tec deal was part of an ongoing project that the distributor has made no secret of, according to Exclusive COO Barrie Desmond.

"We are on a project that started a decade ago and we continue to grow to get on a global scale. We are global but act local and we continue to add value," he said.

He said that now it was a global player it was fully aware it was up against the other big beasts in the distribution jungle.

"We look forward to any challenge, We are not going to change because of them," he added.

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