Dicker Acquires Connect Security For NZD5m Expands NZ Security Business.
Dicker Acquires Connect Security For NZD5m – Dicker Data acquired New Zealand distributor Connect Security Products (CSP) for NZD5 million earlier in the year.
CS Products, which was founded in 2010, distributes a range of access control, surveillance and fire products and the acquisition enhances Dicker Data’s Access and Surveillance (DAS) business in the New Zealand market.
The acquisition was a net asset purchase and the purchase price of NZD5 million comprised $3.5m for goodwill with balance for net business assets estimated at $1.5m at completion being predominantly for inventory.
According to Dicker Data, CSP will run in parallel to Dicker Data’s existing New Zealand operation, leveraging shared services such as finance, warehousing, logistics and marketing, with product and sales functions operating independently.
Dicker Acquires Connect Security For NZD5m
CSP’s founder, Jason Mackie, manages the business, which includes a team of 10 Auckland-based staff, 2 Christchurch-based staff and 2 Wellington-based staff servicing around 548 installer and integrator accounts.
CSP is projected to generate revenues of around NZD8 million this financial year, with normalised EBITDA of approximately NZD $780,000.
“Our acquisition of CSP provides a strategic and fast-tracked entry to the New Zealand market for our access and surveillance business,” said Dicker Data chairman and CEO David Dicker.
“Given the business holds strong market share and is already delivering a profitable result, I’m confident that we’ll be able to the capitalise on the new opportunities quickly, across both Australia and New Zealand to deliver a strong result for our shareholders.”
According to Dicker, the team is continuing to examine adjacent sectors to identify growth opportunities.
You can find out more about CS Products here or read more SEN news here.
“Dicker Acquires Connect Security For NZD5m Expands NZ Security Business.”
