C2000 brings components distributor Onboard
Lay-offs to follow as broadliner targets Datrontech and others
Computer 2000 today acquired the trade and business of PC components distributor Eurodis Onboard, causing around half of Onboard’s staff to face redundancy. The broadliner is paying £1.1 million for the assets of Onboard and has agreed to shell out an additional £300,000 for intellectual property rights, goodwill and contracts. Today’s announcement puts Computer 2000 in a stronger position when competing with other components distributors such as Datrontech, Microtronica and CHS subsidiary Karma. Onboard was a subsidiary of Eurodis Electron, but did not fit in with the company’s agenda for the future. Barry Davis, Eurodis group company secretary, confirmed around nine out of the 21 Onboard employees would be made redundant. The remainder would be found jobs within Eurodis Electron or Computer 2000. Davis said the job losses would be throughout all areas of the company. Graeme Watt, Computer 2000 MD, said: "We are not number one in this market, but we will work at gaining this position through organic growth and acquisition." He admitted that current market conditions were tough, but said Online’s business was primarily Intel-based – over 85 per cent – and that Computer 2000 had faith in this area. As part of the deal, Eurodis agreed not to compete for three years with the Onboard businesses that were being sold. It will continue in its core business of electronic component distribution, such as Intel CEG (Computer Enhancement Group) products in the UK through its Eurodis Bytech subsidiary, based in Basingstoke. Onboard’s pre-tax profit for the year ended 31 May 1998 was around £1 million. According to a statement issued by Eurodis, worsening trading conditions meant the company was only expected to break even this year. The cash from the deal will be used to reduce bank borrowings. ®
Sponsored: Fast data protection ROI?