The MB Technologies Group, Africa’s leading value-add distribution group, which includes, A.C.T, Channel Capital and Channel Risk Management, Platinum Micro, Printacom and Tarsus Technologies among its operating companies, has announced a change of distribution strategy for the Samsung printer brand within the group.

This change sees the repositioning and transfer of the Samsung Printer Distribution agreement from Tarsus to A.C.T. This is in line with the group’s strategy to position A.C.T. as a value added printer distributor offering customised printing solutions to its resellers. A.C.T. has been a Samsung consumables distributor for the past two years. This change will enable the MB Technologies Group to maximise the full potential of this leading brand in the printer industry.

“A.C.T. will assist our partners to market Samsung’s excellent range of business printers by focusing on the competitive total cost of ownership offering” says Gary Pickford, Managing Director at A.C.T.

Samsung currently holds the number one position for Laser Printer in South Africa with annual sales in excess of R350 Million. With a broad, expanding product range and a focused market segmentation strategy, A.C.T. provides Samsung with a great opportunity to grow its business range of printers and multifunction printers into the corporate, government and enterprise market.

“We are delighted to welcome A.C.T. on board as our newest Printer Distributor” says Dennis Brett, Samsung IT/OA Division Head. “A.C.T. is a leading national Printer Consumables Distributor with a reputation for sales and service excellence. With the addition of the Samsung printer brand to their portfolio, they can now offer a complete printing product offering.”

A.C.T. officially commenced distributing Samsung Printers from 1 March 2011.

Anton Herbst, managing director of Advanced Channel Technologies (A.C.T.) since March 2001, will be leaving A.C.T. with effect from 1 February 2011.

As a consequence of his resignation Anton will relinquish his position as a director on the MB Technologies main board effective1 February 2011.

Anton has made an outstanding contribution to the MB Technologies Group over the last decade and will be leaving to pursue personal interests.

In December 2000 Anton and his fellow directors presented a compelling business plan to the MB Technologies board to expand its offerings into the IT consumables market. From humble beginnings, but with an ambitious business plan, significant strides have been made in developing a formidable IT consumables business.

In his gentle and authentic way, Anton together with MB Technologies and his fellow directors and management team, have developed A.C.T. into a comprehensive business with deep management and significant relationships with vendors, customers, banking partners and staff. He has shaken the consumables market in his gentle manner and has created a winning team with a significant focus on its service offering.

“When we started A.C.T. we felt the need to build a business that would last forever. In striving to achieve that we have created a business that is sustainable, whilst being agile. We have also developed mutual respect between A.C.T. and its vendors and suppliers, and most importantly, staff that can see and chase after our big hairy audacious goal. My time with A.C.T. has been beyond my expectations and I will sorely miss the camaraderie of the team, the joy of creating strategies and then the involvement of all in their execution. I am looking forward to the change of pace though and am going to spend a good deal of time focusing on philanthropy, which will come as no surprise to those that know me,” says Anton Herbst.

Gary Pickford, who has held the position of sales director for the last decade and who has an intimate knowledge of the IT consumables market, has been appointed as managing director of A.C.T. with effect from 15 January 2011.

“Gary has made a significant contribution to A.C.T. over many years and has been well groomed under the leadership of Anton to lead A.C.T. into the future and grow the business further. In conjunction with Anton they will ensure a smooth transition,” says Glenn Fullerton, CEO of MB Technologies.

He adds: “Shirlinia Jacobs, who currently holds the position of enterprise sales executive and who has been with A.C.T. since inception, will assume the role of sales director effective 15 January 2011. Utilising  significant experience in the sales arena that she gained under both Anton and Gary’s mentorship, I am confident Shirlinia is well qualified to spearhead A.C.T.’s sales team”.  Helene Liebenberg, who has vast experience in managing A.C.T.’s logistics over the last ten years, will continue in her current role. No further appointments will be made to the A.C.T. board.

“The MB Technologies Board would like to thank Anton for his invaluable contribution to both A.C.T. and the MB Technologies Group and wish him everything of the best with his new endeavours,” concludes Fullerton.

Anton will continue to be associated with the group and will offer strategic consulting services to the MB Technologies Group.

MB Technologies has agreed to acquire the full ownership of Ingram Micro South Africa. The transaction is subject to South African Competitions Board approval, after which it will become effective. An application to the Competitions Board is in the process of being filed.

“MB Technologies has taken this decision given the strategic importance of the components business to the group and the success that has been achieved in building this business over the past three years”, says Glenn Fullerton, CEO of MB Technologies.

He adds “Over this period day to day management has been vested in a strong, fully fledged South African management team and this team will continue to grow the proposed full MB Technologies subsidiary. The transaction will have no effect on the day to day operations of the Group’s components business.”

The company has grown strongly over the last three years and has earned recognition from the channel for customer service and the international vendors for the growth achieved. Recently the company won the African Distributor of the Year award at the EMEA Channel Academy Awards 2010 in Monaco.

The company will be re-branded in the months to come to reflect its new status as a fully-owned member of the MB Technologies Group.

The company will continue to primarily be an independent components-focused distributor within the MB Technologies Group and provide its customers and partners with the same level of excellent service as it has in the past.

MB Technologies / Tarsus Technologies and Eclipse Networks

During challenging times such as those that currently face Eclipse Networks (Pty) Ltd, its subsidiaries and related companies it is critical that all those affected including staff, customers, bankers, suppliers and providers of capital are informed about the facts.

On 17 March 2010 Credit Guarantee Insurance Corporation (“CGIC”) withdrew industry cover on Eclipse due to notifications received from various Eclipse creditors of overdue accounts and pursuant to the letter issued by Richard Rix to all creditors on 26 February 2010. Consequently, MB Technologies and Tarsus Technologies in response to a request from the judicial manager had to make the tough decision to not increase its credit line to Eclipse any further unless an acceptable business plan was provided by the directors of Eclipse. After numerous meetings and various verbal agreements no plan was forthcoming that could allow a view of the viability of the business to be formed.

The MB Technologies Group, through its subsidiary Tarsus Technologies, has been an extremely loyal supporter of Eclipse for the past 19 years and has extended significant credit lines to Eclipse over the period.

In 2008 Eclipse found itself in cash flow difficulties and required the support of its largest creditor being Tarsus, amongst others. At the request of Richard Rix further trade credit was provided by Tarsus Technologies subject to a comprehensive legal agreement that governed the manner in which Eclipse would be managed going forward, acceptable security being provided for the trade creditor funding and the cessation of further investment by Eclipse in non core high risk ventures. These investments were depleting Eclipse’s cash flow and were placing the business’s funding requirements under pressure. Furthermore, these initiatives were being funded out of money that was effectively due to creditors.

Richard Rix represented Eclipse and various Eclipse group companies in the negotiations for the then existing and the additional credit lines secured by the 2008 agreement, with his signature to these agreements evidencing his agreement with all terms, conditions and covenants.

Despite a specific clause limiting the further investment in Eclipse Multiplay and any other new businesses, Richard Rix, Johan Schuurman and Ana Stark, as the directors of Eclipse, failed to comply with the terms of the agreement. The directors allowed unauthorised funding to be spent exceeding the agreed limit by almost five times and allowing additional funding to be invested, contrary to the agreement reached with MB Technologies and Tarsus Technologies. The full extent of Eclipse’s liabilities will be disclosed at a meeting of creditors to be held in due course.

On 28 February 2010 Richard Rix sent a personally signed letter to all suppliers entitled “Account Status Update” in which he alleges that Eclipse’s inability to pay its creditors is due to a change in its bankers. He adds further that “Despite rumours you may have heard, I assure you that Eclipse is both profitable, healthy and continues to grow strongly despite the economic challenges most organisations are faced with. The fact is that we are bucking the trend”. He invited a meeting with creditors.

Pursuant to this letter various meetings were held with Richard Rix and Nico Meintjes with both the MB Technologies CEO and Tarsus Technologies CEO and CFO present. The insolvency and consequently Eclipse’s inability to pay its debts was discussed. The dangers of trading under insolvent circumstances were highlighted to the Eclipse directors. In addition, discussions were held that sought to find a solution to the extremely weak financial position that Eclipse found itself in and to address the contraventions of the 2008 legal agreement. The serious breaches had placed Eclipse in a position where it was unable to pay its debts, including salaries, in the normal course of business.

At the meeting, management accounts were presented which clearly indicated that both in the short and the long term Eclipse was commercially and technically insolvent and would urgently require significant funding from third parties to continue as a going concern.

Despite negotiations that were held in good faith with Richard Rix during March 2010, that sought to find an acceptable way forward, Richard Rix applied for Eclipse to be placed under judicial management with the High Court granting such order on 19 March 2010 unbeknown to the creditors including MB Technologies / Tarsus Technologies.

Subsequent to the appointment of the judicial manager, various meetings were held with CGIC, MB Technologies, Tarsus Technologies and Johan Schuurman the financial director of Eclipse to gain a full understanding of Eclipse’ financial position. Richard Rix was invited to these meetings on several occasions and despite agreeing to meet declined the meetings at the last minute.

Once placed under judicial management by the High Court of South Africa the responsibility for the management of Eclipse was placed under the control of Henk Strydom and three other judicial managers. An independent third party consulting company that specialises in turn arounds was appointed by CGIC to evaluate the viability of Eclipse and its ability to continue as a going concern. The independent report revealed Eclipse’s dire financial position and indicated that its survival would be dependant on a large capital injection or continued support from its creditors.

On 25 March 2010 the judicial manager relieved Mr Richard Rix and Mr Nico Meintjes of their respective positions as chief executive officer and national procurement officer and placed Johan Schuurman in the position of acting CEO because of his financial responsibilities and knowledge of the business. 

On 26 March 2010 a high level overview of the company was presented by the judicial management team to MB Technologies / Tarsus Technologies and CGIC calling for further credit to be extended by Tarsus Technologies. Various meetings were held to discuss the requested additional credit extension with MB Technologies / Tarsus Technologies being firmly of the view that unless an acceptable business plan was received no further credit would be forthcoming from MB Technologies / Tarsus Technologies.

On 29 March 2010 the judicial manager requested MB Technologies / Tarsus Technologies to sanction further funding. MB Technologies and Tarsus Technologies are Eclipse’s largest creditor and could unfortunately not extend further credit particularly in light of the aforementioned breaches.

MB Technologies has been working with the judicial manager to evaluate the various options available to both Eclipse and its creditors and will follow the appropriate channels to recover the amounts it is owed and assist where possible in securing alternatives. All creditors and interested parties are encouraged to follow the correct legal procedures and to contact Henk Strydom of Strydom and Bredenkamp Attorneys for further information.

Acer South Africa has appointed Ingram Micro South Africa as its third distribution partner for the country giving the company access to Acer’s range of desktop and notebook products.       

Ingram Micro South Africa, a  joint venture between South Africa’s largest broad-based technology distributor, MB Technologies and the world’s largest IT distributor, Ingram Micro  will differentiate itself by focusing on growing Acer’s presence in selected niche markets.

Graham Braum, country manager of Acer South Africa says: “This partnership with Ingram Micro South Africa will allow us to cover new key segments of the market by tapping into Ingram’s growing base of resellers and their customers”.

He continues “we are particularly excited by the focus Acer will receive from Ingram Micro South Africa as the only top-tier international hardware brand in its product portfolio. Ingram Micro is one of Acer’s biggest distribution partner’s in EMEA and it makes sense to bring that highly successful relationship to South Africa.”

Ingram Mcro South Africa entered the market as a focused components distributor servicing South Africa’s system builder, upgrade and ‘white-box’ channels. However, these dealers have reported growing demand from their customers for access to complete systems from a tier one PC brand, especially in the SMEE market.

“Although we will retain our focus on this growing and vital part of the South African technology reseller channel, we are answering their need for a complementary range of products from an international PC brand,” says Hansie Fourie, CEO of Ingram Micro.

“It made sense for us to look towards Acer South Africa as a partner because of the significant and long standing relationship that exists between our international parent companies.”

Ingram Micro South Africa does not plan to take on any additional international PC brands and will focus only on the Acer products in its completed systems product portfolio. In the future, Ingram Micro South Africa may look to offer its resellers a choice of Acer server and storage products, in addition to the desktop, LCD, projector and notebook ranges it will supply with immediate effect.

Tarsus, a MB Technologies subsidiary, will continue to serve as a broad-based distributor for Acer while Ingram Micro South Africa will keep its focus on selected vertical markets in its existing dealer base.

“MB Technologies is delighted to broaden its important and strategic relationship with Acer South Africa,” says Glenn Fullerton, CEO of the MB Technologies Group. “This new agreement between Ingram Micro South Africa and Acer allows the joint venture to enhance its offering by adding an international tier one highly respected completed product range to its vertical market and further strengthens the MB Technologies Group’s relationship with Acer”.

South Africa’s largest black empowered IT distribution group, MB Technologies, has announced the appointment of Pierre Spies and Anton Herbst as executive directors to the main board.

Glenn Fullerton, CEO of MBT says “both Pierre and Anton, CEO’s of Tarsus Technologies and ACT respectively, are veterans of the South African IT Industry. They have made significant contributions to the growth of the group over many years. Their insight into various sectors of the IT industry in which they have operated will further strengthen the MB Technologies main board. Their wealth of knowledge and experience will be well utilised to ensure optimisation of Group and operational strategies and will assist the Group in its future growth plans.”

He adds: “Their appointments will not alter their day to day executive responsibilities for the running of their respective operations. They will continue to hold and fulfil their current positions as chief executive officers.”

“The combination of their operational insights into dynamic market conditions in the IT distribution market coupled with their abilities to distil their more than three decades worth of collective experience into a broader, strategic view of the market will be vital contributors to the success of the Group,” says MB Technologies Chairman, Leo Baxter.

Fullerton concludes “We are delighted to appoint such outstanding and loyal members of the MB Technologies team to the main board”.

MB Technologies, a subsidiary of the Royal Bafokeng Group and the largest  supplier of IT products to the Southern African market, has announced the appointment of Glenn Fullerton as its Group CEO with effect from 1 July 2009.

The announcement is in line with Bruce McGregor’s plans to emigrate and as such, McGregor will be vacating the position he has held since June 2007.

“As a chartered accountant with many years of commercial experience, Glenn brings a wealth of corporate management expertise to his new role and has an excellent in-depth knowledge of the group that stems from him being the Group Financial Director over the last decade,” explains MB Technologies Chairman, Leo Baxter.

”He has been instrumental in the growth of the group and has played a significant role in building the Group into the leading IT distributor in the country,” Baxter adds.

Niall Carroll, CEO of MB Technologies’ majority shareholder, Royal Bafokeng Holdings says that the board is 100% behind McGregor’s decision and the appointment of Fullerton.

“The day to day running of the group could therefore not be in better hands. We are confident that Glenn will take the group to new heights,” Baxter concludes.