Westcon, the distie arm of Datatec, is to become Europe's biggest networking distributor through the acquisition of the distribution business of Landis, a Dutch-owned rival.

Terms are yet to be finalised, but the two have signed a formal letter of intent. Landis will add E450 million sales to Westcon's turnover and 600 employees. Landis has a wider European footprint than Westcon, with operations in 10 countries.

As always with distie takeovers, consolidation will be the key to success. More scale means more manufacturer rebates and bigger co-op marketing budgets. It also means more scope for job cuts, an inevitable feature of IT distribution these days. ®