Westcon Group consumes sister biz Intact Integrated Services

Tech giant Datatec aims to give distie sub much needed shot in the arm

Datatec-owned enterprise distie Westcon Group (WG) is to swallow sister company Intact Integrated Services to beef up margins by selling project, support and managed services, primarily on Cisco kit.

The move is part of a wider play to consolidate all services operations under a single roof, and highlights efforts by WG to give the bottom line a much needed shot in the arm.

Intact was spun out of integrator Logicalis - another subsidiary of the Datatec stables - in 2009 and given standalone status in the group. The financials of the WG deal, which closes next month, were undisclosed.

With a major presence in the UK and Germany, plus operations in Asia Pacific and the Americas, Intact sells white label design, configuration and installation services exclusively on Cisco kit to channel punters.

Alongside Afina, an Iberian distributor acquired by WG in 2012, whose portfolio includes Network- and Security Operation Centres and advanced monitoring services, Intact will form the "strong foundation in our Services Practice," said WG CEO Dolph Westerbrook.

The Global Services Solutions Practice - to give it the full title - is being led by former Afina director general Pedro Galatas. Integrating all the units will not happen overnight.

The move appears to put WG in conflict with some larger services-based resellers and integrators that have built their own operations, allowing smaller channel firms that haven't invested to undercut them on price.

But services units at these larger business can experience peaks and troughs and under resource planning some may need or want to call on distributors for support from time to time.

WG is also comprised of trading brand Westcon - which sells brands including Avaya, Checkpoint, Juniper and provides level one and two support in the UK, Germany and France - as well as Cisco distie Comstor.

With the financial figures WG has been reporting in recent times it needs to move up the "value stack" said one source.

In fiscal '13 WG operating profits fell by nearly a fifth to $98.2m and the it has already warned of a $20m profit shortfall in fiscal '14 ended 28 February.