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Mega dealers comprise a teeny tiny percentage of the roughly 1,750 dealers we have in the United States. Still, no one can argue that they’re also responsible for a not insignificant percentage of sales made in the industry.
Our tracking of the megas as well as all other dealers (and in Europe) is done through our Channel Mapping Tool, our News Service, and the research studies we conduct. As was the case in 2023, there are 18 mega dealers in the US. To answer your next question: The 18 mega dealers are the same. While this overarching story has symmetry, it would be foolish to think that everything beneath the surface is also identical.
The recipe to attaining more than $100 million in yearly revenue differs. Of course, mega dealers want to add new logos to their client portfolio and to expand wallet share within existing accounts, but then you have that proverbial fork in the road. Some put more emphasis on managed print services (MPS). Others desire to be a fully realized managed services provider (MSP) and increase earnings with managed IT services (MITS). Pacific Office Automation (POA) and UBEO are two megas that come to mind relative to print, while Impact Networking, Marco, and Novatech are my prime suspects in the realm of MITS/smart technology.
George Carlin said that football is a “ground acquisition game.” Perfect definition if you ask me, slicing things down the core—and this is where additional variation with the mega dealers can be seen. Since the start of 2023, the megas have made 18 dealer acquisitions (there’s No. 18 again, more symmetry). All five of Marco’s moves and the three each closed by DEX and UBEO extended their respective footprint, mainly along the eastern seaboard of the US. Of note, DEX completed two sizeable transactions earlier this year alone. POA, normally with more of an eye toward organic growth, has done a pair of deals in the last 18 months. And in news outside of megas acquiring dealers, but still in the acquisition arena, the private equity firm Perpetual Capital Partners acquired Novatech last week.
Let’s see what happens over the next year. Enjoy our third annual mega infographic!
Infographic designed by Mark DiMattei, Managing Editor at Keypoint Intelligence.
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INFOGRAPHIC: Keypoint Intelligence’s 2023 Quick Guide to US Mega Dealers
INFOGRAPHIC: Keypoint Intelligence’s 2022 Quick Guide to US Mega Dealers (Part 1)
INFOGRAPHIC: Keypoint Intelligence’s 2022 Quick Guide to US Mega Dealers (Part 2)
