VADition sells up to Exclusive Networks

Ledger and Morris agree deal with Paris-based firm as their distributor's fifth anniversary nears

Pan-European distributor Exclusive Networks has more than doubled its UK footprint by snapping up VADition for an undisclosed sum.

The acquisition builds on the Paris-based group's 2009 acquisition of Arc Technology and VADition will now act as its 24/7 support centre for Europe.

Founded in 2006 by channel veterans Neil Ledger (pictured) and Ian Morris, VADition has grown rapidly to become a £34m distributor with vendor franchises including Fortinet, Isilion and Palo Alto.

Ledger and Morris will stay on in the posts of joint chief executives of the UK business.

In a joint statement, the entrepreneurial duo said the synergies between the two organisations were compelling.

"The acquisition by Exclusive is a great fit for us," they stated. "We share so much in common from company culture, to technology vision, to business strategy."

Ledger and Morris built up and sold distributors Data Connectivity and equIP in the 1990s and 2000s, respectively, over a similar timeframe and speculation over VADition's exit strategy has been rife as the distributor nears its fifth anniversary.

Some onlookers were convinced one of the big US-based distributors would swoop but private equity-backed Exclusive Networks is no stranger to the acquisition game itself having picked off several distributors across Europe recently. Despite its relative youth, it boasts anticipated 2011 revenues of over £150m and 200 staff across 11 countries.

Olivier Breittmayer, chief executive of Exclusive Networks Group, said: "There are so many similarities between the two organisations, both started around the same time, both focus on innovative and disruptive technologies, and both share exclusive and preferred partner status with vendor organisations."

Chris Walsh, sales director at Exclusive Networks UK, said: "Although operating across similar market sectors, there is very little vendor cross-over between the two organisations, which represents tremendous opportunities for our vendor partners and reseller channels alike."

Terms of the deal - which was based on a combination of cash and shares - were not disclosed but as a yardstick, Data Connectivity and equIP fetched £7m and £10.5m when they were sold in 1998 and 2005, respectively, according to the CRN archives.