Value and efficiency in the channel will help change that, he predicts. Consolidation will continue in Europe, where speculation has grown in recent weeks that the second-largest distributor, Computer 2000 Group AG, may be up for sale. But if recent moves by Ingram Micro and CHS provide any indication, the focus is shifting to Asia. As part of the transaction, Ingram Micro is transferring its Singapore and Malaysia operations to Electronic Resources, and the Asian company gets to use Ingram Micro's technical services and Impulse information system. The investment follows acquisitions by Ingram Micro in Europe and Latin America to advance the distributor's strategy to become the market share leader in all regions.
Stead expects more transactions in Latin America, Central Europe, and Africa.
Tech Data is concentrating on Europe. The Clearwater, Fla., company recently named Gerald Labie, a 30-year industry veteran, as the first president for its European business. However, we're on the hunt and should complete a deal or two there in the next year.