Support services group DCC has announced a deal to buy Hammer Consolidated Holdings for an initial enterprise value of £38.3m.
The new acquisition will integrate with the company's DCC Technology division, which trades as Exertis.
Based in the UK, Hammer is a specialist distributor of server and storage solutions to resellers in the UK and Europe and its clients include Dell, Intel, NetApp, Seagate and Western Digital.
It also provides product design and build solutions tailored to the requirements of customers in specific industries. It operates from offices in the UK, France, Germany, Sweden, Holland and Belgium.
DCC said the £38.3m will be paid entirely in cash and is structured as an initial payment at completion, followed by earn out payments over three years based on Hammer's future trading results.
The deal is conditional on competition clearance from the European Commission and is expected to complete by the end of this year.
Tommy Breen, DCC's chief executive, said the deal will significantly strengthen the product and service capability offered by Exertis to its reseller customers.
"In addition, Hammer's expertise will better enable us to take advantage of positive industry trends, including growth in cloud data centers and demand for big data analytics," he added.
