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Cash-rich resellers to embark on acquisition spree, claims analyst

Wave of reseller takeovers predicted

Low interest rates are expected to drive record levels of consolidation between resellers, according to the latest research from Plimsoll.

Over 676 UK ICT resellers were surveyed by the financial research firm. 189 were found to be sitting on large cash reserves which were generating low levels of interest.

According to Plimsoll, the combination is likely to encourage resellers to look into investing their reserves in acquisitions. The company also identified 159 resellers that it deems are prime takeover targets.

"These companies are now in the position to buy up large chunks of market share at rock-bottom prices and make that money work for them," commented the author of the report, David Pattison. "They must be like kids in a sweet shop at the moment – all those distressed competitors available at a fraction of their true value.

"The market is set for a wave of takeovers in the next months," he added.

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