Climb steps into Ireland with DataSolutions acquisition
Farewell DataSolutions. As Woody Guthrie put it all those years ago (89 in fact), “so long, it’s been good to know you”.
But before we get too carried away eulogising the memory of the Irish distributor, which has been operating since 1991, I feel it’s worth pointing out that DataSolutions hasn’t disappeared, it’s just morphed into something else. Climb Channel Solutions Ireland to be precise.
This is probably not that much of a surprise given that DataSolutions was bought by Climb Global Solutions in October 2023. At the time, DataSolutions had been making inroads into the UK market and “achieved exponential growth of over 30% per annum for the last four years”. According to an 8-K filing on 6 October with the Securities & Exchange Commission, the deal to take over DataSolutions was expected to cost almost $15.5 million.
DataSolutions, which counts Check Point, Citrix, Vercara and HPE Aruba among its vendors, breached the €100 million mark in 2023, growing turnover by nearly 30% to €126 million.
When the acquisition occurred, DataSolutions managing director Michael O’Hara said joining forces with Climb would “enhance the offering we provide through our existing expert team, continuing to deliver service that powers success and adding value to customers in both Ireland and the UK”.
He added that the future of the company was “in excellent hands under the leadership of Dale Foster [CEO of Climb Global Solutions] as it integrates into Climb’s global platform”.
Foster was equally effusive, arguing that the quality and variety of DataSolutions’ vendors would “create cross-sell opportunities and enable us to deliver greater value together, positioning Climb as the distributor of choice for partners and resellers”. He also highlighted DataSolutions’ “robust recurring revenue base, with more than 90% of its fiscal 2023 revenue coming from existing reseller partners”.
Judging by what he had to say a few days ago, that customer loyalty remains undimmed. Foster talks of DataSolutions retaining 90% of customer wallet share and believes that can be recreated for any vendor that the distributor brings on in the future.
While the two companies had a similar product mix, Foster stresses that there was overlap with only a small number of vendors. He believes that Climb’s presence in the US will help address one of the biggest issues DataSolutions previously faced in terms of recruiting vendors and getting them enthused about selling into Ireland. With a single global platform, it should be easier to “onboard” emerging technology vendors in the US and have them in Ireland within weeks.
Climb is preparing to ramp up its activities in Europe beyond Ireland and the UK. It has appointed territorial directors in France and Germany and is focusing on expansion into the DACH region. It is expected to target acquisitions in Western Europe when what Foster describes as “the roll up of distribution across Europe” occurs over the next five years. He is bullish about Climb’s prospects.
Foster also believes that Climb’s North American operation could learn a thing or two from DataSolutions when it comes to service. “I want Climb in North America to act more like over here,” he state. The level of service resellers get in North America is lower because there is more margin compression and greater competition. “DataSolutions gets the lion’s share of its business because of its level of service,” he observes.
Commenting on the new structure, David Keating, country manager for Climb Channel Solutions Ireland, said: “While there have been some new additions to our service offering, our success as a company has always been driven by our people and our resellers – who have been a great support over the last 30 years. As Climb Channel Solutions Ireland, that will remain the case as our experienced team looks to continue delivering outstanding service, innovating for partners, and driving business success.”
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