Wayside Technology Group has acquired IT channel distributor Spinnakar for $11.8 million plus a possible profit. The down payment values Spinnaker at approximately 5.9 times pre-tax annual income for the 12 months ending July 31, 2022.
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Wayside, founded in 1982, is headquartered in Eatontown, New Jersey. The company has 174 employees listed on LinkedIn. Wayside’s areas of expertise include channel marketing, vendor relations, software and hardware.
Spinnakar, founded in 2019, is based in Berkshire, England. The company has 11 employees listed on LinkedIn. Spinnakar’s areas of expertise include security technology, storage technology, specialty distribution, marketing and business development, data center management, big data, software, cloud, networking, value-added distribution, and emerging technologies.
Spinnakar’s business is focused on Europe, the Middle East and South Africa and has more than 15 vendor partners including Cloudian, Deep Instinct, Rubrik, Virtuozzo and Vast Data. For the last twelve months ended July 31, 2022, Spinnakar reported a pre-tax income of $2.0 million (£1.5 million).
Spinnakar founder and CEO Gerard Brophy will continue to lead and scale Spinnakar’s EMEA business while integrating with Wayside, Climb UK and Gray Matter’s European business units, the company said.
Wayside acquires Spinnakar: Executive Insight
Dale Foster, CEO of Wayside, commented:
“Spinnakar’s founders have a proven pedigree of over 40 years of building successful IT distribution businesses and bringing emerging vendors to market, where they have experienced exceptional growth. Their European line card includes several providers that we represent in the US, while also bringing in several key new providers, such as Vast Data, which provide significant cross-selling opportunities. Their in-depth knowledge and experience in storage, cloud, security, and data management aligns seamlessly with our main industry verticals of focus. We expect this acquisition to increase gross margin and net income, driving both growth and profitability going forward.”
Gerard Brophy, founder and CEO of Spinnakar, said:
“We are delighted to be combining with the Climb and Gray Matter UK teams and look forward to scaling the integrated business in EMEA. Both organizations have very similar DNA with our focus on emerging technology products and services. As a new member of the team, I plan to further expand our product line through our combined experience and shared vision of bringing innovative new companies to market through our global network.”
Wayside is an international technology channel company that markets software, hardware and services, directly and through resellers, to information technology and software development professionals, according to its website.
Wayside acquired Canadian technology distributor Interwork Technologies for an undisclosed sum in April 2020. In November 2020, the company acquired CDF Group Ltd, a UK-based IT, software and cloud distributor and service provider to through its Climb division.