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- Dicker Data (DDR) enters a deal to acquire the security and information technology distribution division of Hills (HIL) in Australia
- Under the deal, Dicker Data will acquire the business, inventory, customer and vendor relationships, employees and their entitlement obligations, and certain other net assets of the Hills SIT division for around $20 million
- The proposed acquisition is subject to Hills shareholder approval, which will be sought in early April 2022
- Dicker Data was up 4.17 per cent, trading at $15 at the end of the trading day
Dicker Data (DDR) has entered a deal to acquire the security and information technology distribution division of Hills (HIL) in Australia.
Headquartered in NSW, Hills is the largest distributor of physical security products in the Australian market.
Under the deal, Dicker Data will acquire the business, inventory, customer and vendor relationships, employees and their entitlement obligations, and certain other net assets of the Hills SIT division.
Following the acquisition, Dicker Data will not only be the largest distributor in the segment but will be positioned to grow rapidly.
Under the terms of the conditional business sale agreement, Dicker Data will acquire the SIT business for cash consideration structured as a partial net asset sale.
The purchase price represents a premium to the net assets sold, with the final amount dependent upon inventory related balances at the completion date, estimated to be around $20 million.
Dicker Data and the Hills SIT division already share three mutual vendors, presenting an opportunity to novate agreements with over 50 net new vendors to Dicker Data, in line with the company’s growth strategy. The Hills SIT division is currently working with over 2,000 customers, 85 per cent of whom are new to Dicker Data.
“This will add an entirely new business area to our company and introduce us to a wide range of new customers, as well as adding significant new revenue with the promise of significant expansion on that, going forward,” said Chairman and CEO, David Dicker.
The agreement will see Dicker Data transition 130 of the Hills team members and take up responsibility for a nationwide network of seven trade centres.
The proposed acquisition is subject to Hills shareholder approval, which will be sought in early April 2022.
Dicker Data was up 4.17 per cent, trading at $15 at the end of the trading day.
