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Asbis snaps up Megatrend

by Stuart Wilson, Tuesday 29 April 2008

Emerging markets distribution powerhouse Asbis has established a presence in Bosnia and Herzegovina. Asbis has snapped up an 80% stake in local distribution outfit Megatrend Sarajevo. Megatrend has been operating in Bosnia and Herzegovina for more than a decade, distributing a number of A-brand vendors including HP, IBM, Lenovo, Apple and Toshiba. Asbis hopes that its sales in Bosnia and Herzegovina will hit US$20m in 2009.

Under the terms of the deal, Asbis has the option to acquire a further 10% stake in Megatrend Sarajevo within two years of the acquisition. The remaining 10% of Megatrend’s share capital will be divided among key company employees

Alan Mitrović, Asbis VP for South-Eastern Europe at Asbis, said: “Until now we did not have direct operations in Bosnia and Herzegovina, though we did sell to local resellers through our neighbouring offices. The market is still quite small, fragmented, business terms are unclear, the retail market is very small and most of sales are corporate. However, we are absolutely positive that this market will grow in the next years to about 100,000 computers in 2010.”

He continued: “We are very glad that we now have a well-established office in Bosnia and Herzegovina, and we already plan to have sales of about US$20m in 2009. We do not plan to have offices in Montenegro and Albania in 2008, but we intend to serve resellers from these countries with Field Sales Managers linked to supply from neighbouring ASBIS offices.”

Megatrend also holds distribution rights for MGE, 3Com, Zyxel, Philips and Draper. Asbis claims that the deal gives it access to a new market with an existing infrastructure and customer base, as well as welcomes new vendors in its current portfolio. Megatrend sales hit US$8.1m in full year 2007 with after-tax profits of US$64,000.

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