Strategic move in IT distribution market in Romania: ELKO announces acquisition of IT Smart Distribution
IT and consumer electronics products and solutions distributor ELKO announced that it has signed an agreement for acquiring IT Smart Distribution, strengthening a position among the Top 3 IT distributors in Romania after completing the transaction.
Rīga, 2021-06-29 08:14 CEST --
According to the agreement, ELKO Group (Akciju Sabiedrība ELKO Grupa), through its subsidiary ELKOTech Romania SRL acquired 100% of shares of value-added distributor IT Smart Distribution SRL. The consolidated turnover of both companies, which exceeds USD 125 million, will rank ELKO among the Top 3 IT distributors in the highly competitive Romanian market. The closing of this acquisition will finalize in the upcoming months. The transaction has already received acceptance from the Romanian Competition Authority.
"Strengthening positions in the CEE region is one of our strategic directions. The Romanian market shows a good potential to grow and has been in our focus for some time now. Over the past three years, our subsidiary in Romania has undergone reorganization and the development of a new strategy. The acquisition of IT Smart Distribution is an important milestone in this long journey. Consolidation is key to overcome tight competition in the industry and to meet our ambition to become the first choice for customers in Romania,” says Svens Dinsdorfs, CEO of ELKO Group.
Market-leading capacity to deliver IT solutions
IT Smart Distribution is a value-added distributor with one of the most experienced teams in the field and a great portfolio of A-class brands complementary to ELKO’s product portfolio. This generates compelling strategic benefits – the combined strength and well-rounded offer of top-quality products ensure the necessary capacity and competence to address and serve any retailer, system integrator or IT project in Romania.
“IT Smart Distribution is a strong company with a good reputation in the market. We see a lot we can learn from each other. Knowledge sharing, team competence and an extended portfolio will ensure the best-in-class experience for all our customers and partners. I very much welcome IT Smart into the ELKO family and look forward to reaching new heights together, especially in the IT solution business,” adds Carmen Stanciu, General Manager of the joint team of ELKO Romania and IT Smart Distribution.
“ELKO can rely on a dynamic, well-connected team with a long experience in value-added distribution. As we share common values and both companies put the long-term relationship first, this acquisition is a natural fit and will create strong potential growth for customers. We are confident that it is the best decision to become a part of ELKO Group, and I am sure that all parties involved will benefit from this partnership,” Mona Curceanu, Head of Operations at IT Smart Distribution.
Both companies will start integration at the organizational level – joined portfolios, know-how exchange and one team mindset. The first steps are synchronizing terms and conditions of cooperation and ensuring a complete portfolio available to customers. The prevailing focus during the integration process is to make it seamless for both vendors and customers and ensure that their business objectives are realized to their full potential.
ELKO Group is one of the region's largest distributors of IT and consumer electronics products and solutions, representing 400 IT manufacturers. The company provides a wide range of products and services to more than 10 000 retailers, local computer manufacturers, system integrators and enterprises within various sectors in 11 countries in Europe. The Group’s turnover in 2020 amounted to USD 2.2 billion (EUR 1.9 billion).
About IT Smart Distribution
IT Smart Distribution was founded in 2012 and today is one of the top IT companies in Romania. The company focuses on IT product distribution and value-added services to local system integrators, retailers and other resellers of business products and solutions. IT Smart is proud of its team of professionals; their innovation and passion for technology have been the key to its success.
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