The 2005 acquisition of DNSint.com AG has had a positive impact in the transformation of the Enterprise Computing Solutions (ECS) business unit of Arrow Electronics [NYSE: ARW] into a global leader in the information technology (IT) distribution industry.
“Acquiring DNS was the platform for our European expansion,” said M. Catherine Morris, president, Arrow ECS. “We now represent 30 percent of Arrow’s total revenue and we are the leading value-added distributor in the channel. DNS certainly has had a key role in helping us achieve this success.”
The acquisition of DNS was the first step in strengthening Arrow ECS’ operations into a stronger, more valuable business for suppliers and reseller partners. With offerings that closely mirrored Arrow ECS, DNS brought increased scale and depth to Arrow ECS. The addition of DNS has also provided revenue opportunities to expand Arrow ECS’ line card, its partner community and its offerings in high-growth sectors.
Today, Arrow ECS is a $5 billion (pro forma) business with offices in 20 countries, relationships with more than 75 of the world’s leading suppliers and more than 15,000 partners. It is the No. 1 value-added distributor of enterprise products for HP and IBM, the No. 1 distributor of enterprise storage, and the No. 1 distributor of security and virtualization software.
Arrow ECS also has been expanding DNS’ operations in Europe to reflect its commitment to providing comprehensive solutions to partners and mapping its services to best meet the needs of its suppliers and partners. The specialist distribution division of InTechnology and Centia/AKS were recently added to DNS’ offerings through acquisition in December 2006 and August 2007, respectively.
The addition of InTechnology expanded Arrow ECS’ operations into the United Kingdom, the second largest IT market in Europe, and significantly increased its share in storage and security solutions. The Centia/AKS transaction increased the depth of Arrow ECS’ offerings in the high-growth markets of access infrastructure and virtualization. Centia was credited for bringing Citrix distribution in the United Kingdom and AKS was the first Citrix distributor in the Scandinavian region. Centia and AKS together held No. 1 market positions in the United Kingdom, Sweden, Denmark and Finland. These acquisitions enabled Arrow ECS to strengthen its portfolio in offerings that were complementary to DNS’ existing server business.
Through these acquisitions, Arrow ECS has expanded its presence into 20 countries around the world. DNS manages Arrow ECS’ European operations to ensure that its 6,000 partners receive service from sales and support staff in the countries where they operate.
“Arrow ECS maps its offerings to best serve the needs of our partners and suppliers,” said Kevin Gilroy, president, Arrow ECS. “Our partnership with DNS is an integral part of our global growth strategy and our ability to provide unsurpassed value to our customers today and in the future.”
