09 Sep, 2019
Gandalf Distribution AB becomes a wholly-owned subsidiary of ELKO Group
After successfully operating in the Nordic region for two years, ELKO Group signed an agreement for purchasing the remaining 15% of shares of Swedish-based distributor Gandalf Distribution AB at the end of August, thus concluding the acquisition.
In July 2017 ELKO Group acquired 85% of shares in Gandalf Distribution AB, one of the leading distributors of computers and peripheral products in Sweden. This event marked the first steps of ELKO Group’s expansion into the Nordic market. The share of ELKO Group’s revenue from the Nordic region reached 6% by 30 June 2019.
ELKO highly values the experience and the well-established business model of Gandalf in the Nordic region – we were confident about the acquisition narrative and the synergies it will bring to both companies from the very beginning. During these two years we have jointly managed to significantly expand Gandalf’s product portfolio (adding vendors Intel, Ubiquity, Razer, Kingston, MSI, Microsoft, to name a few) ensuring that our customers have access to a broader range of products. This has helped to achieve a CAGR of 19% for ELKO Group’s Nordic revenue by the end of Q2 2019. We have also strengthened the product management team in order to maintain a high standard of service for both our vendors and our customers. This groundwork has prepared us for the further growth of Gandalf’s operations over the following three years, not only in Sweden, but across the Nordic region. Accordingly, acquiring 15% of shares and achieving full operational integration is a logical and easy decision to make. Gandalf’s team has proven to be highly motivated and professional – we are looking forward to many more opportunities, achievements and mutual growth!CEO of ELKO Group
Gandalf has been operating under its own brand which it has gradually introduced together with a separate company culture and functional elements, but further integration will take place in the near future. David Nicander will continue in his position as CEO.
The initial joint venture has proven to be a great success. The business culture and both organizations’ customer-focused mindset has been put to the test and we’ve seen that full integration will benefit customers, employees and vendors making it the next logical step towards our future growth. Today, at Gandalf, all employees are proud members of the ELKO Group, and strive to drive future successCEO of Gandalf Distribution AB
About Gandalf Distribution AB
Gandalf Distribution was established in Malmö in 1984 and currently has 45 employees. Gandalf distributes IT-related hardware – laptops, hard drives, monitors, graphics cards, network products, mobile phones and components – to dealers across the Nordic region. Gandalf is one of the region’s largest distributors with sales offices in Stockholm, Gothenburg, and Lund. Gandalf recently completed its financial year with a SEK 840 million (USD 90 million) revenue.
More information: www.gandalf.se