JB Hi-Fi has bought a 51 percent stake in Melbourne reseller Network Neighborhood for an undisclosed amount.
The deal marks an important step in the expansion of JB Hi-Fi’s commercial division, which will now offer professional IT services to businesses across Australia.
“Our commercial clients are demanding integrated end-to-end solutions,” JB Hi-Fi CFO Richard Murray said in a statement.
“The combination of JB’s buying power and NN’s leading service offering will enable the group to provide our clients with complete networking and IT solutions.”
No.15 in last year’s CRN Fast50, Network Neighborhood grew its fiscal 2012 revenues almost 52 percent to $26 million, largely on the back of increased sales of end-to-end solutions and consultancy services to organisations in the education, healthcare and manufacturing sectors.
NN founder Hugh Marquis is under contract to remain with the business and undertake “strategic development” for the next few years.
Marquis told CRN he and JB Hi-Fi were able to reach an agreement after a period of negotiations last year. He said it marked an “exciting time” for NN, now having access to JB Hi-Fi’s impressive scale and resources.
JB Hi-Fi has the option to acquire the remaining shares of Network Neighborhood in 2014.
No further financial details of the transaction were disclosed.
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Issue: 324 | February 2014
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