Distribution Hot As Private Equity Hunts For B2B Play

With private equity dollars circling the tier-two distribution market, more consolidation is likely coming as investors recognize the value of the products and services that technology is bringing to the market, according to a longtime analyst.

“The two-tier distribution market is a hot market in general. The market is growing. There’s a lot of complexity that they solve for the vendors and partners,” Michael Diamond, a former 17-year Ingram Micro veteran who is now a senior director of market intelligence with The 2112 Group, told CRN. “I think what we’re going to see is more consolidation in the two-tier market… does that mean rolling up distributors in higher growth categories? I think it could be that. Could they roll up some other IT service resellers? Could be that. There’s a lot of high growth categories in the market around cloud, security that I’d be looking at.”

Written by O’Ryan Johnson

Read the entire article, Distribution Hot As Private Equity Hunts For B2B Play, at crn.com.