Dimension Data sells off distribution business

Dimension Data has announced a deal to sell its Australian and New Zealand distribution business Express Data to ASX-listed hardware distributor Dicker Data.

Under the terms of the deal, Dimension Data will sell its Express Data and Express Online business units to Dicker Data for an undisclosed sum. Subject to approval by Dicker Data shareholders, the deal is expected to close at the end of March.

Dimension Data CEO Brett Dawson said the company has made the decision to exit the physical distribution market as part of its strategy to sharpen its focus on its core businesses while expanding into new areas including managed services, IT outsourcing and next-generation data centres.

“While the resale of technology remains a core element of Dimension Data’s value proposition to clients, physical distribution is typically outsourced to specialist distributors,” he said. “Express Data is our only distribution asset.”

Dimension Data acquired Express Data and Express Online when it acquire Com Tech Communications in 1999. The company has around 350 employees that will be transferring to Dicker Data.

Image courtesy of Garfield Anderssen under CC