May 21, 2022

Dicker Data (ASX:DDR) Set to Acquire Hills Security and IT Division – The Market Herald

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  • Dicker Data (DDR) Reaches Agreement to Acquire Hills (HIL) Australia’s Information Technology and Security Distribution Division
  • As part of the agreement, Dicker Data will acquire the business, inventory, customer and supplier relationships, employees and their obligations, and certain other net assets of the Hills SIT division for approximately $20 million. .
  • The proposed acquisition is subject to Hills shareholder approval, which will be sought in early April 2022
  • Dicker Data rose 4.17%, trading at $15 at the end of the trading day

Dicker Data (DDR) has reached an agreement to acquire the security and information technology distribution business of Hills (HIL) in Australia.

Based in NSW, Hills is the largest distributor of physical security products in the Australian market.

As part of the agreement, Dicker Data will acquire the businesses, inventory, customer and supplier relationships, employees and their rights obligations, and certain other net assets of the Hills SIT division.

Following the acquisition, Dicker Data will not only be the largest distributor in the segment, but will be positioned to grow rapidly.

Under the terms of the conditional sale of business agreement, Dicker Data will acquire the SIT business for cash consideration structured as a partial sale of net assets.

The purchase price represents a premium to the net assets sold, with the final amount dependent on inventory balances at the date of completion, estimated to be approximately $20 million.

Dicker Data and the Hills SIT division already share three common vendors, providing an opportunity to novate agreements with more than 50 net new vendors for Dicker Data, consistent with the company’s growth strategy. The Hills SIT division currently works with over 2,000 customers, 85% of whom are new to Dicker Data.

“This will add a whole new line of business to our business and introduce us to a wide range of new customers, as well as significant new revenue with the promise of significant expansion thereon,” said the Chairman and CEO, David Dicker. .

The deal will see Dicker Data transfer 130 of the Hills team members and take responsibility for a nationwide network of seven shopping centers.

The proposed acquisition is subject to Hills shareholder approval, which will be sought in early April 2022.

Dicker Data rose 4.17%, trading at $15 at the end of the trading day.