After a gruelling 18 hour session that concluded at 4.15am on March 24th, Nimans sealed the deal that was too good to pass over. Its acquisition of Rocom marks a new phase for comms distribution and heralds a fresh era of opportunity for dealers as the former rivals march forward arm-in-arm.
For much of the comms channel's history Nimans and Rocom were synonymous with fierce rivalry and competition. So no surprises when Nimans' Chairman, Julian Niman, and Managing Director, Paula Gillings (who played an instrumental role in putting the deal together), tingled with a small measure of apprehension as they strode into the Rocom fortress for the first time. But in the latest sign of how the former rivals are coming together, Niman and Gillings enjoyed a warm welcome from the Rocom camp. "We received a standing ovation from all the workforce which made us feel very proud," said Niman. "We have two quality businesses moving forward together."
"We are working on the same side as friends instead of rivals"
Nimans acquired arch rival Rocom from the ATC Group for £12.45 million, creating the biggest UK telecoms distributor with a turnover circa £100 million and 350 staff. ATC acquired Rocom for £17.6 million in August 2006. Following the Group's H1 interim results last year - which saw a six per cent rise in profits overshadowed by a hike in Group debts - the company revealed it had received an expression of interest in a subsidiary of the Group.
"When we identified this as an opportunity it was too irresistible to ignore and we knew we had to pursue it," said Niman, who hailed the acquisition as ‘the opportunity of a lifetime'. "It took around seven months to complete from start to finish, and demonstrates our continued commitment and confidence in the channel, giving us a much bigger platform from which to grow."
The deal is now rated as ‘monumental', ushering in a ‘momentous era for the telecoms distribution industry', claimed Niman. "The Rocom staff have reacted with great enthusiasm and will play a fundamental role in the future. For customers it's very much business as usual for both companies," he added.
No longer entrenched in a locked battle to outdo each other, the Nimans-Rocom allies are already assessing new opportunities for the dealer channel. Niman said he is keen to develop both brands and also highlight the many channel benefits generated by the deal. "The purchase of Rocom, which has its own long-standing and respected pedigree, creates an unbeatable combination and powerful proposition. We are all highly motivated by the potential," said Niman.
"This acquisition also provides the perfect platform for sustained strategic growth for customers, giving them access to the full product portfolio across Nimans and Rocom. No other distributor will have the depth and diversity of stock at their disposal," he added.
Another major change will be a shift in policy by both companies as they are no longer competing directly in the marketplace. "We are now working on the same side, as friends instead of rivals," Niman explained. "We have been competing directly against each other for over 25 years but that is now a thing of the past. Overnight we have become allies. This will have a big bearing on our plans going forward as we can fully focus on channel development, rather than ‘shifting' the channel where customers in the past may have been caught between the two with trapped loyalties.
"Our aim has always been to concentrate fully on helping dealers develop their businesses further. That process will be easier now. The ‘best of breed' qualities of both companies will work together for everyone's benefit. For ourselves, suppliers and customers alike this represents tremendous opportunity."
Industry players have touted the acquisition. According to Paul Clark, Plantronics' General Manager for the UK and Ireland, the deal has created the potential for ‘unparalleled levels of service and support'. He said: "This is excellent news for the channel. With the rise in flexible working practices and growth of unified communications it is critical for resellers to have a distribution partner dedicated to helping them realise the market opportunities. Nimans and Rocom have the strength of presence, technical expertise and operational excellence to deliver what the channel requires."
Rob Lister, Sales Director of Lister Communications, has also given the deal an enthusiastic thumbs up: "Simplifying the distribution chain will allow Nimans to invest more of its expertise in doing what it does best instead of being occupied by competing with a major rival, as was the case with Rocom. It can concentrate more of its focus on customers, which will ultimately benefit the channel."