US$100m boost for TDME
Distribution outfit secures new credit insurance deal with Euler Hermes.
TDME's growth strategy has received a clear endorsement from credit insurer Euler Hermes, which has agreed to provide the distributor with US$100m worth of cover. The deal will give TDME, the former Tech Data Middle East business now owned by Aptec Holdings, greater financial flexibility as it looks to build its brand in the Middle East.
TDME's success in securing the credit insurance comes as the wholesaler continues to finalise distribution agreements with the 14 vendors that previously worked with Tech Data. Cisco, Linksys, Oracle and Western Digital are among the manufacturers to have already signed on the dotted line. "To absorb the expected high demand on all of the A-class vendors that we represent we have negotiated US$100m worth of insured channel business for TDME in addition to a similar value for Aptec Distribution in Dubai Internet City," revealed Essam Baghdady, interim managing director of TDME and group VP at Aptec.
"Providing continuity to Tech Data's business in the Middle East without interruptions is key. Our goal at TDME is to provide the excellence of distribution that Aptec provides to the channel. TDME will follow the same corporate culture that made Aptec a success story in the region," he added.
TDME claims that secured credit facilities are absolutely necessary given the current emphasis on distributors to penetrate the SMB market. The ability to extend credit is seen as a vital part of furthering growth and increasing reach in this sector.
Baghdady insists TDME is ready to work closely with resellers to address their financial needs and supply the right amount of credit. "Studying the channel needs and requirements is the business of progressive and efficient distribution. We will see some major initiatives that TDME will be introducing to the benefit of resellers," he added.
The move to strengthen its credit capabilities is just one of several key measures being taken by parent Aptec Holdings to retain elements of the Tech Data business and prevent duplication where possible.
"We are currently working on the harmonisation of processes and procedures on a group level to further enhance productivity, efficiency and ultimately customer service," said Baghdady. "We are committed to make dealing with TDME a pleasant experience for our partners," he concluded.
Meanwhile, parent Aptec has been named as a Middle East distributor for software vendor Adobe. "We see this appointment as an important step towards our vision of becoming a major player in the multimedia market segment," commented Bahaa Salah, boss at Aptec Distribution.