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Kelway CEO reviews future of Elcom staff

Still at mulling stage

Kelway, which acquired the veteran reseller Elcom from administration on 8 June, said the firm is weighing up its strategy and was unable to comment on the future of some 80 workers based at two UK sites.

Speaking to The Register from Elcom ITG's headquarters in Basingstoke, Kelway's CEO Phil Doye said:

"We're at an early stage and are not yet sure about operational requirements, we are reviewing it as any business would."

He added that the firm was keen to invest in and recruit a larger sales team and confirmed that Elcom ITG would continue to operate from Basingstoke.

According to Doye, the south west of England is a key part of Kelway's strategy moving forward.

Explaining the rationale behind the acquisition, Doye told us: "Elcom had a good sales base but lacked a confidence in its core business."

He also reckoned that distributors were happy to see Kelway step into the breach and take on and retain the Elcom name.

Elcom, which also has a small operation based in Slough, was renamed Elcom ITG under the deal.

Doye said Kelway felt strongly that the name – which has a good reputation among UK disties – should remain.

He said he expected the undisclosed buy-out to take "six to nine months to bed down. The acquisition is fairly sizeable, but we are very pleased to have taken it on".

The reseller, which is aiming for the £100m mark over the next year as well as further acquisitions, saw a turnover of £54m to March 2007 and is predicting a figure of £65m over the next year.

Doye added that Elcom had hoped to see £35m before going into administration. ®

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