Mark Davison reports – The biggest deal in the history of the South African IT distribution channel has come to fruition with the Alviva group acquiring its main competitor Tarsus Technology Group from holding company Investec, for R185-million.
The deal is subject to Competition Commission approval.
It will create the country’s largest distribution group with annual revenues in excess of R20-billion.
Under the terms of the deal, Tarsus will continue to operate as a separate business – alongside current Alviva distributors Axiz and Pinnacle – for at least the next five years.
Pierre Spies, group CEO of Alviva, says the acquisition of Tarsus is in line with the company’s future vision and strategy.
“We are really excited about the acquisition,” Spies says. “We are building a company for future generations to come. We know what we want to achieve with the acquisition of Tarsus and I have no doubt that we will.”
Spies says that consolidation in the local channel is inevitable given the current economic climate – compounded by the Covid-19 pandemic – and that vendors, channel partners and even competitors understand the logic behind the acquisition.
He is optimistic that Competition Commission approval will be forthcoming early next year.