Exclusive Networks has acquired Hong Kong-based specialist value-added distributor JJNET amid plans to combine local capabilities to create a cyber security infrastructure “powerhouse”.
Strengthening channel reach across Hong Kong and the wider Asia Pacific markets, the transaction is designed to offer “immediate scale” for Exclusive Networks, backed by in-country partner relationships and portfolio synergies to support “rapid growth objectives”.
Founded in 2009, JJNET specialises in the distribution of cloud and security solutions, currently holding vendor agreements with Ruckus, Micro Focus and Pulse Secure, in addition to A10 Networks and ExtraHop among others.
The company’s 22 employees will join forces with the local Exclusive Networks team in Hong Kong, numbering almost 30 and reporting into regional headquarters in Singapore. Upon closure of the acquisition, current general manager Jimmy Lok will become country manager of Hong Kong at Exclusive Networks, with other key management also remaining to ensure “continuity” of business going forward.
“The lack of specialist value-added distributors in Hong Kong is a huge opportunity for Exclusive Networks to expand to fill this gap in the market and provide more local and regional partners with value and expert go-to-market impetus around best-in-class solutions,” said Olivier Breittmayer, chairman and CEO of Exclusive Networks. “JJNET fits our profile of a fast-growing, locally focused cyber security specialist value-added distributor with the same vision and values of our global network.
“Our strategic global vendor partners are very positive about this move, and we believe there is significant upside for JJNET’s current pool of 200 or so reseller partners to engage with a broader cyber and cloud portfolio, extending their value and relevance to enterprise customers in all sectors.”
The acquisition of JJNET represents Exclusive Networks’ first in Asia Pacific since the purchase of Singapore-based Transition Systems in January 2016, before officially combining capabilities in July 2019. As a result, the Paris-based distributor now operates across Australia, New Zealand, Singapore, India and Vietnam, alongside Malaysia, Indonesia, Thailand and the Philippines.
“Joining the Exclusive Networks family is great news for everyone associated with JJNET and it will bring many new opportunities for our partners and employees,” Lok added. “Our two organisations are like-minded and we have a strong plan to fully integrate into a powerful market force.
“Moving forward, we see huge potential for Hong Kong-based partners to leverage the global reach of Exclusive Networks and enlarge deal opportunities with new and existing multinational customers.”
As revealed by Channel Asia, Exclusive Networks appointed Brad Gray as senior vice president of Asia Pacific in early January, as the distributor combined Asia and Pacific into one region.
Tasked with driving growth at both vendor and partner levels, Gray joined the distributor with more than 25 years of in-market experience, having most recently held the position of vice president of general business sales at SAP. Based in Singapore, Gray reports to Andy Travers, executive vice president of Worldwide Sales and Marketing at Exclusive Networks.
The acquisition comes days after Tech Data entered into an agreement to acquire Innovix Distribution in a blockbuster move designed to expand presence across Asia Pacific. Subject to customary closing conditions, Channel Asia revealed that the transaction is expected to close during the third quarter of Tech Data’s fiscal year 2021.
The main motivation behind the acquisition is to “accelerate” Tech Data’s growth in next-generation technologies, with a specific focus on cloud, security and endpoint offerings. This is in addition to expanding business in the key geographies of Singapore, Malaysia and Hong Kong.