Redington buys 49% stake in Turkish distributor
Company says move is part of strategy to explore opportunities in new markets
IT distributor Redington has agreed to pay US$42m for a 49.4% stake in Arena, one of the largest technology product distributors in Turkey.
In a statement to the Bombay Stock Exchange (BSI), Redington said the deal was "part of the company's strategy to explore opportunities in new markets".
Arena generated sales of US$451m during its last financial year and is listed on the Istanbul Stock Exchange.
Raj Shankar, CEO of Redington Gulf, officially announced the news to resellers and vendor partners at the company's annual channel awards ceremony, which was held in Dubai last night.
"I can confirm that it is not a rumour, it is true - we are acquiring a significant stake in the second largest IT distributor in Turkey," said Shankar during a keynote speech to open the awards ceremony.
Arena markets more than 400 international computer brands and accessories, including Acer, HP, IBM, Fujitsu, Microsoft, Philips, Sony, Seagate and Oki.
It operates two main branches in the Turkish cities of Izmir and Ankara, and an office in Northern Cyprus. The distributor's customer base is understood to encompass more than 7,500 channel companies.
In its BSI filing, Redington said the share purchase agreement was being carried out by its overseas subsidiary, Redington International Holdings Ltd.
The company added that it is hopeful the acquisition "will enhance the company's overseas business and will be value accretive for the company's shareholders".
Redington is not the first distributor with Middle East interests to be lured by the potential of the Turkish market.
Last year, Avnet acquired a majority stake in leading components and storage specialist Akora, while Westcon is present in the country through a joint venture with networking firm Netex, which is part of the Index Group. Aptec and Logicom also have operations in Turkey.