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Pinnacle gets IBM, Lenovo in TriCon buy-out

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In a multi-million rand deal, Pinnacle Micro has bought the South African operations of Tri Continental Distribution, one of IBM and Lenovo's biggest distributors in the region. 

Alf Isaacs, who now takes up the position of CEO of Tri Continental – which will become a fully-owned subsidiary of Pinnacle – says that the deal is a win-win situation for everyone involved.
"This deal has catapulted Tri Continental into the league of major distributors as we are now part of a major listed company," Isaacs says. "It gives us access to extensive credit lines and allows us to focus on our core Tier One reseller business into Pinnacle's 5 600 active resellers.
"For Pinnacle, it now means that they have access to IBM and Lenovo products," he says. "They gain the necessary skills, the Tier One brands that they have wanted for some time, and they gain market. This will catapult Pinnacle into a number one Tier One distributor. They're in a very different league to where they were before and are now one of the major players in the industry.
"It is a win for Pinnacle, a win for resellers and a win for IBM and Lenovo because they were looking for a distributor with extensive reach into the channel, which Pinnacle has," Isaacs adds. "It will also allow us to conduct warranties on a national basis through Pinnacle's extensive logisitics and infrastructure within its eight nationwide branches.
"Our focus at Tri Continental may change a little, but we will continue to add value to our strategic resellers and will, in fact, be able to focus more on this."
Isaacs says that as part of the deal, he has signed a five-year contract