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- Dicker Data (DDR) completes the acquisition of leading New Zealand-based IT distributor Exeed Group
- Dicker Data paid $68 million to acquire the company to expand its presence in New Zealand and gain access to a larger range of world-leading brands
- Dicker Data will now become the second largest IT distributor in New Zealand with estimated revenue of over $500 million for the combined entities
- Company shares were up 1.07 per cent to trade at $14.15
Dicker Data (DDR) has completed the acquisition of the Exeed Group.
At the end of July, the billion-dollar technology stock entered a sale and purchase deal with Exeed to acquire the business for $68 million.
The funding was supported by an advanced cash facility from Westpac Banking Corporation (WBC).
At the time of the agreement, Dicker Data’s Chairman and CEO, David Dicker, was pleased to have secured the deal.
“After many attempts over more years than I can count we have finally got a deal done to acquire Exeed. This transaction will put us in a very strong number two in New Zealand, with a platform for number one. The combined companies are highly synergistic.”
Exeed is based in Auckland and is the second largest IT distributor in the New Zealand market. When the agreement was signed, Dicker Data said the acquisition would expand its New Zealand business and give it access to an increased range of world-leading brands.
Since establishing operations in Australia in 2016, Exeed’s business represents combined revenues of around NZ$380 million (A$362.5 million), with full year normalised earnings before interest, tax, depreciation and amortisation (EBITDA) for FY21 expected to be NZ$15 million (A$14.3 million).
Now that the acquisition has been finalised, Dicker Data will become the second largest IT distributor in New Zealand with estimated revenue of over $500 million for the combined entities.
Company shares were up 1.07 per cent to trade at $14.15 at 12:38 pm AEST.
