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Spectrami Eyes Europe-Wide Expansion

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Spectrami acquires Network Performance Channel (NPC), a value-added distributor for networking, monitoring and security solutions in Germany, Austria and Netherlands. This is only the first step in their European expansion plans, says Managing Director, Anand Choudha. Spectrami, founded in 2011 by Choudha, is a distributor in security and IT network infrastructure.

Spectrami CEO"We're looking for acquisitions in the UK," notes Choudha. Yes, that’s a plural in his quote. More than one acquisition…

"And we're interested in going into other regions like Nordics, Benelux, East Europe and even southern Europe."

If the company's ambition is notable, it may be even more newsworthy to report their origin: Spectrami is based in the UAE.

It's not easy to imagine a European starting up a distributorship today and reaching a full range of security and networking technology in a few years-- let alone how hard it is to imagine a ramp-up in the scale Choudha envisions.

Yet the Middle East has proven a fertile soil for the growth this Dubai-based distributor. "We mastered the art of identifying new technology--and then learned how best to launch it locally. By acting just like a vendor," says Choudha when asked about the Spectrami success formula.

"In the initial phase of a launch, we contacted end users," said Choudha. Not with the intent to close sales, he explains. Instead Spectrami involved end users to ensure their reseller customers would get sales. This tactic, along with others, merged into a full plan, now known as the Spectrami VEM (Vendor Extension Model.)

Between the VEM and the ability to spot new tech vendors before others, Spectrami succeeded in entering the local market and growing their distribution business.  This caught the eye of the multi-billion dollar investment firm KKBO Group (Khalifa Bin Butti, Chairman) who invested in Spectrami with the mandate (and funding) to go out and create an international business.

Spectrami's first step was to invest in its own UK office, an organic step. "We're looking at deals in the UK. There's a lot of market consolidation, and we see mainly start-ups and very big volume distributors on the scene," says the Spectrami CEO.

The ideal purchase would be a mid-sized distributor in security and networking already with a portfolio of vendors and customers. For example, Spectrami’s acquisition of NPC GmbH brings more than 20+ years of expertise in IT distribution throughout the EMEA market.

Spectrami team

[Left] Anand Choudha, Managing Director, Spectrami [Center] Birgit Schmank, Managing Director, Network Performance Channel GmbH [Right]Michael Hofer, Managing Director, Network Performance Channel GmbH

With a portfolio of manufacturers like Ixia, cPacket Networks, Datacom Systems and Savvius, NPC focuses on resellers, VARs and OEMs who sell network visibility, improved security, reduced complexity and optimized performance to enterprises across EMEA.

As per the terms of the agreement, NPC GmbH will now be rebranded to Spectrami GmbH.

“Plans of acquisition in the European territory has been one of the major goals on our roadmap towards becoming an EMEA player in the next two or three years, providing vendors with a single platform across the geographies,” adds Choudha.

Choudha is not put off his course by the fact the European market is diverse and very different to the Middle East. "Every region is different," he says. "We already know that from the Middle East. But the process of aligning yourself with the customer is the still the key. If our acquisitions need our help, we can work with them to make sure they create a good local market strategy."

Spectrami is not the only distributor racing to be pan-European. Today acquisitions are very much in favor as market consolidation,  aging owners, and new security requirements create a perfect storm.

"We're going to reach $100 million in sales in the next two years," predicts Chouda.

Some people say, “Where there is a will, there is a way.” But in distribution the cash to buy your way in the market (when you find what you want to buy) is more important than a will—it’s a way by itself.

Go Spectrami

Go  Spectrami's German Acquisition