Massive consolidation has occurred in the New Zealand IT distribution market over the past decade. Well known distributors including Renaissance, Tech Pacific, VAD, Datastor and Vantex are all brands of the past, with some becoming part of global giants and others just disappearing entirely.
In addition to the acquisitions, the big are definitely getting bigger while the niche players are struggling to get enough critical mass.
By critical mass we refer to is the revenue per employee, which varies from just under $700,000 NZD all the way up to over $3 million per NZ based employee.
Distributors like Ingram Micro that once were only seen as volume distributors have entered more specialist spaces and represent some very niche brands.
Together these 17 distributors represent well over $1.4 billion in NZD turnover.
Out of the top 17 we are reporting on, 59% are foreign owned – by revenue that means foreign owned distributors are garnering 73% of total revenue.
Seven of the 16 are privately owned businesses and it's difficult for us to get exact revenue for those businesses.
All distributors have been approached and asked to validate the numbers. Almost all have updated and confirmed the numbers.
|Distributor||NZ Revenue||NZ Staff Count|
|Dicker Data (was Express Data)||$149m||60|
|Hills (was Lan 1)||$38m||20|
|Arrow (was Observatory Crest)||$10m||4|
|Rhipe (was Newlease)||$7m||2|
|Exclusive Networks (was Whitegold)||$2m||2|
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