Distributor Cabac has acquired Melbourne-based Si Computer Products in a deal that gives it preferred Australia-wide supplier status to Coles Myer-owned retailer Officeworks.
The acquisition could also open the floodgates for the distributor to supply other Coles Myer stores such as Coles, Kmart, Big W and Megamart, according to Andres Runge, national retail manager at Cabac.
Officeworks was one of SI's largest customers.
Cabac acquired SI for an undisclosed amount. SI managing director Paul Watkins would leave to pursue other interests importing products from overseas, Runge said.
Runge said the buy was a "huge deal" for the 24-year-old Australian company which, over the past few years, had entered the computer wholesale market. Previously it had only been an electrical wholesaler.
Cabac sells a range of its own branded networking products that compete with international suppliers such as Belkin, D-Link and Netgear.
Resellers could sell Cabac-branded routers and switches for up to 20 percent less than comparable Belkin and D-Link products, Runge claimed.
The distributor was increasing its retail market presence by creating 'top of the line' packaging that resembled some of the bigger players in the market, Runge said.
Cabac also supplies Harvey Norman, Office National, Leading Edge Group, Computer Australia, Dick Smith and thousands of independent retailers.
Cabac – with 120 staff – would do around $60 million in sales revenue for its financial year ending 30 June, Runge said.