Almasa and Delta expected to confirm tie-up

Delta and Almasa expected to announce co-operation agreement next week

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By  Andrew Seymour Published  April 30, 2009

Dubai-based IT distributors Almasa and Delta Business Products are shortly expected to provide details of an agreement that will see the pair work together in the market.

Sources close to both parties have confirmed that an arrangement is in place, with an official announcement slated for next week.

The precise nature of the partnership remains unclear at this stage. It has been suggested in the market that Almasa could be planning a takeover of Delta in an effort to strengthen its coverage of the retail channel — a particular stronghold for Delta in the Gulf. However, if Delta is unwilling to concede ownership of its business then it is likely that the agreement will encompass some form of back-office sharing.

It is not uncommon for distributors to explore ways of combining back-office functions. Last year Aptec and Despec MERA revealed they were looking to optimise each other’s resources and logistics infrastructure after both companies became majority-owned by DIFC Investments.

Should that prove to be the case with Almasa and Delta, it remains to be seen how the deal is structured so that both parties draw equal benefit from it.

Delta has been operating in the market for 14 years, carving out a reputation as a key supplier of PC peripherals, printer supplies, data media and audio-visual equipment to the retail channel. It currently distributes products from vendors such as Canon, Creative, Imation and Microsoft.

Almasa, which made sales of $433m last year, would welcome the chance to increase its strength in the retail channel. Its current product line-up is more geared towards the commercial market, but it does carry brands such as Asus, Hitachi and Seagate that ensure a steady revenue stream from the retail sector.

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