MERLION to Acquire DSCon Distribution Company

7 february 2017

Through this transaction, MERLION will strengthen its presence as a leading VAD distributor in the market of network-based solutions, data storage and processing systems as well as a supplier of IT products and services for system integrators.

MERLION, the leading Russian VAD distributor, and DSCon, a company specializing in the distribution of software and hardware for creation and refurbishment of data processing centers (DPCs) and network infrastructure, have announced a new agreement, now signed by the Parties: MERLION shall acquire DSCon.

This transaction was contemplated by MERLION as part of its VAD (Value Add Distribution – distribution of value-added solutions) development strategy. The main purposes of this strategy are expansion of the company’s market share and enhancement of its competences in the area of Enterprise solutions, as well as strengthening MERLION’s presence as a leading supplier of IT products and services for system integrators.

‘DSCon has a 16-year-long record as a distributor of sophisticated Enterprise solutions for network infrastructure and high-performance data storage and processing systems’, comments Igor Solntsev, VAD Distribution Director at MERLION, ‘DSCon was the first company in Russia to start the promotion of Infiniband technology (interconnect facilities that enable creation of supercomputers and high-performance clusters). Since 2003, the company has been part of various projects that involved creation of the largest multi-node computer systems in Russia and CIS. From now on, MERLION is to benefit from this sought-after expertise as well as partnerships with more than ten specialized global IT producers who possess cutting-edge technology in their respective areas. Moreover, DSCon has exclusive right to promote some high-potential IT solutions: in particular, Seagate Dothill storage systems. DSCon's accession shall mark another significant milestone in the development of MERLION’s VAD segment and will enable us to maintain the status of a leading Value Add distributor’.

DSCon (Distribution Service Consulting) has a sixteen-year-long history. Software and hardware solutions for data storage and processing and virtualization systems have been the distributor’s main niche from the very beginning. DSCon is most widely known as a reliable supplier of wide range of DSSs (data storage systems), server equipment, network switching equipment as well as solutions for data backup and restoration and business continuity at any level: from a workgroup to entire company.

As one of the key players in the Russian market of VAD distribution, MERLION offers its partners a wide range of extra services at any stage of project implementation: from preparation of procurement documents and pre-feasibility study to after-sale support of the hardware and software procured by the customer.

Due to DSCon’s accession, MERLION’s solution portfolio is going to expand and will include products offered by global technological leaders in various spheres: in particular, Mellanox Technologies (the developer of high-performance solutions Infiniband and Ethernet which optimize DPCs’ capacity) and Infortrend (a vendor of network data storage solutions). Besides, the Company intends to retain the exclusive OEM agreement with Seagate for Dothill data storage systems. In addition to the above-mentioned brands, MERLION’s portfolio will now include solutions offered by several well-known companies: Quantum, ATTO Technology, FalconStor Software, Overland Storage, Panasas and XenData Software.

In the course of DSCon business integration into MERLION, new employees will reinforce VAD Division staff.

No financial details or other confidential information about the transaction are being disclosed.

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