Harris Technology has sold its Anyware distribution business to Leader Computers for an undisclosed amount.
The deal includes the majority of Anyware's inventory, worth about $4.5 million, along with its business name, customer and supplier databases.
While Anyware has provided the bulk of Harris Technology's revenue since the company went public in 2016, chairman Andrew Plympton said it also contributed to the majority of losses in the past 12 months.
"Gross margins have been under enormous pressure together with changes in customer demand driven by a move away from traditional PC hardware to hand-held devices and tablets," Plympton said.
"The purchaser has substantiative interests and revenue in this sector with traditional bricks and mortar distribution."
Harris Technology also reported its financial results for the year ending 30 June 2018, showing revenue was down 10.6 percent to $45.6 million, compared to $51 million last year. The company incurred a $2 million loss, compared to a $2.8 million loss in FY17.
The poor results were pinned on Anyware, which the company said had been successful in decreasing its expenses, but costs relating to warehouse leases continue to be an issue.
With the Anyware business under new ownership, Harris said it would now focus on its core B2C e-commerce business, which it said performed in line with expectations, and its M2C business, which it operates with joint venture partners in Hong Kong.
Anyware acquired Harris Technology from Wesfarmers in 2015 when it was still a brick-and-mortar retailer owned by Officeworks. A year later, ASX-listed online technology retailer Shoply revealed plans to merge with Anyware, changing the combined company's name to Harris Technology Group Limited. At the time of the merger, Anyware turned over $50 million in revenue.
Leader managing director Theo Kristoris said resellers will have access to over 30 new vendors thanks to the addition of Anyware's partnerships.
“Anyware has a strong reputation in the IT industry for the distribution of quality IT accessories and peripherals. With HT8 change in strategy we have come to arrangement to purchase their assets. Note this is only Anyware distribution business," Kristoris said.
"Harris Technology and all other business under HT8 will continue. Leader is 100 percent trade only IT distributor and loyal to channel. The Anyware team will come across to Leader, so resellers can continue long term relationships they have built. Anyware will continue trading and it will be business as usual for some time to come.”
Adelaide-headquartered Leader made a similar acquisition in January 2016 when it acquired the assets of Altech when the distributor sank into administration after being saddled with $9.6 million in debt.