Westcoast subsidiary Orion has contributed to the growing consolidation trend in distribution by snapping up Nottingham-based hybrid reseller/distributor XMA.

Joe Hemani, chairman of Westcoast, said: “This deal is a perfect fit for Orion. We have been talking to XMA for the past five months and there are a lot of synergies for both customers and suppliers.”

XMA has a turnover of £200m and employs more than 350 people. It specialises in printing and peripherals, flash memory, barcoding equipment and data storage, partnering with over 50 vendors.

Hemani was unable to expand on plans for the business, but confirmed the deal had been completed last week and that the current management structure would remain the same for the time being.

“We are hugely excited by this because XMA has tremendous potential,” he said. “XMA is a jewel of a company in the north and I am delighted to have acquired it.”

Graeme Watt, president of rival distributor Bell Micro Europe, agreed the company complemented Westcoast’s existing business.

“Consumables are a good place to play,” Watt said. “As margins are squeezed in other areas, they still give partners a chance to make money. As far as Joe building his business goes, this acquisition seems like a good fit.”

Nitin Joshi, founder of ChannelMoney, said: “This is further evidence of consolidation that is definitely going to continue in 2008. XMA is a long-established company and is very stable.”

The deal was for an undisclosed sum.