Cork's Wisetek to merge with Computer Discounters in US
Cork-based Wisetek, which disposes of used technology and destroys data held on old machines securely for corporate clients, has merged its operations with US firm Computer Discounters which trades as Datakillers. The merger terms were not disclosed but the combined entity will have revenue of €30m this year.
Sean Sheehan, chief executive of Wisetek, said the company is a global service provider that manages retired IT equipment for companies, which also includes secure data sanitisation. Mr Sheehan said that in a lot of cases the material is good and can be used again and get back into the supply chain. This means a company does not have to buy new equipment, which is obviously a big financial gain for it. If the equipment can not be reused, it can be sold for piece parts or sold for refining. "It is part of the whole circle economy nowadays," Mr Sheehan explained. He also pointed out that as the equipment is reused it does not go into landfill and so fulfils a company's green requirements.
Mr Sheehan said that cyber security and cloud security are big issues for business, but added that data breaches can occur from the hardware end of things as well. It is very important that companies watched where their material is going, he said, adding that this is where Wisetek came in as the company can do all the data sanitisation and make sure the whole process is certified for a business.
On the merger with Computer Discounters, Mr Sheehan said that Wisetex's strategy had always been to grow in the US, but it realised it needed help to secure that goal as the US market is so vast. Wisetex came across Computer Discounters about a year ago. The US firm concentrates more on office equipment, while Wisetex focus more on enterprise and so the two companies complement each other, Mr Sheehan said. Wisetex can now offer the full suite of services to companies right across the spectrum from phones, desktops and laptops to data centres, he added.
MORNING BRIEFS - Dublin listed sales, marketing and support services group DCC has reached a deal to acquire a Liquid Petroleum Gas distributor in the US valued at $200m. Retail West, owned by NGL Energy Partners, has its headquarters in Illinois and sells 130,000 tonnes of liquid petroleum gas each year across the US. The transaction is expected to complete in March next year. It is DCC's first foray into the LPG market in the US.
*** Oil prices are back above $64 a barrel for the first time in two years. Brent crude, the benchmark most relevant in determining fuel prices here, is now up 40% since June. Crude has surged since the weekend following a corruption crackdown in Saudi Arabia. The Kingdom, which is sitting on the world's largest proven oil reserves, has detained dozens of officials, princes and business people and threatened to freeze their assets.
*** Disney and rival 21st Century Fox have held talks in recent weeks about the possibility of acquiring the bulk of Fox's business. The talks broke up without such a deal being agreed according to CNBC, which first reported the details. Disney's interest is primarily in Fox's film and TV production assets including its 39% stake in Sky. CNBC said the two companies are not in active discussions but may come back to the table in future.