Global leaders in the Technology Distribution Industry, are growing fast and powerful via consolidations. The Canadian distribution landscape, mostly dominated by midmarket players, has been impacted by acquisitions such as that of TD Synnex in 2021. The large acquisitions end up widening the void in the SMB category. As an offshoot, the SMB distribution segment is an opportunity that the Canadian distributors are looking at with even more interest now. Many are considering consolidations to scale up and grow. The next few years will see the emergence of more definite market leaders.
Making good strides are two Ontario-based Canadian businesses, TDL Canada (TDL) and Gentek Marketing Inc (Gentek). TDL announced acquisition of Gentek early this month. According to the Gentek blog, the combined company – TDL Gentek, will be led by Jeff McInnis, President, the CEO of Gentek, reporting to Laurie Tugman CEO of TDL.
While Gentek has been distributing communications and networking products for over 40 years, TDL has been serving retailers, e-commerce fulfillment, and installers nationwide for the same time. Mitch Freedman, former owner of Gentek, calls the acquisition as “a case of 1+1=3, where purchasing power, complementary product sets, diverse customers and collective distribution expertise will add a strong Canadian distribution partner to the market.”
“TDL Gentek has now become a top Canadian owned and managed distributor operating at scale.” says Jeff McInnis, President TDL Gentek, “The merged companies bring together over 250 world class brands under one roof, provided to Canada’s finest channel partners, value-add resellers, and broadband operators. I am honoured to lead the team and to ensure our customers will remain at the center of all we do.”
Consolidations within the midmarket sector can be effective in keeping the larger players away from this rather lucrative SMB/ midmarket space. It will be interesting to see how the rest of the distribution industry approaches this changing dynamics.
This is a developing story. Watch this space for more.