The UK’s largest Apple reseller, Jigsaw24, is for sale, multiple industry contacts have told The Channel.
The Nottingham-based B2B seller has hired Deloitte to run the process, a move that comes just three years after private equity outfit NorthEdge Capital (NEC) moved in to back a roll up by the management team.
In recent weeks, an Information Memorandum was distributed to interested parties who agreed to sign a non-disclosure agreement.
A teaser document was sent to both potential trade and private equity buyers, sources close to the matter claimed.
Retail is a tough place for Apple resellers to compete, what with Apple establishing its own stores across the land. But Apple wants a network of sellers in business verticals including education, designs industries, media, etc.
Jigaw24 parent Jigsaw Holdings Ltd was acquired for an undisclosed amount by company shell Insanely Great Ltd in 2013, backed by NEC, according to company accounts.
The business is run by former BT Engage and Redstone exec Martin Balaam and founder and MD Roger Whittle.
Northgate Bank rolled several acquisitions the following year, including fellow Apple reseller Square Group, which expanded its B2B foothold and provided a presence in London, and Matrix Software Development, which created an app that integrates product management and publishing software.
Revenue at Insanely Great has risen from £75.8m in fiscal ’14 (an extended 14-month period) to £86.9m in the year ended 31 May 2015.
Jigsaw24 sells Apple’s entire hardware range, though it said in its account it is focusing on higher margin kit - Apple does well on margin itself, but those that sell it do less well, as is the way of things.
Services made up seven per cent of turnover in fiscal ’15, including repairs, maintenance, integration, managed devices, cloud and hosted services.
Gross profit was £11.6m versus £9.7m in the prior year but after 25 per cent hike in admin overheads to £10.42m and distribution costs, operating profit was £1.05m, down from £1.08m. The Channel has approached Jigaw24 for comment and will update if we hear back. ®