Content, Channel markets, Mergers and Acquisitions, Channel investors, IT distribution, Mergers and Acquisitions

Network Security Group Buys Waytek Software For Software Distribution Expansion

Network Security Group (NSG) has acquired Waytek Software, the software distribution and value-added resale division of Waytek.

NSG is the cyber security distribution division of Temprano Techvestors. The acquisition will add Waytek’s Avast Business cloud and endpoint security solutions to NSG’s partner offerings.

“We took a long hard look at the business and said this looks like it will roll right into our model,” Jennifer Cutts, director, sales and marketing, Temprano Techvestors, tells ChannelE2E.

Temprano purchased NSG a little more than a year ago to serve as its distribution arm, aggregating each company’s brands and offering them through a single sales channel. Temprano was launched with the idea to help emerging European software companies bring their business to the U.S. and Canada.

Temprano eventually began looking to diversify its business model and the NSG purchase was basically a proof of concept, according to Cutts. “What we thought we could do was come in and take the business, tighten it up, automate some things, bring in some sales people that are efficient and can do a lot rather quickly, and just see how we can affect the net margin and the profit,” she says.

Jennifer Cutts
Jennifer Cutts

She says the plan worked. It also motivated the company to continue searching for VARs (Value-Added Resellers) and VADs (Value-Added Dealers) with a desire to be sold. Temprano would then polish them up, stack them together, and create a client base for the company to sell its exclusive brands into while growing the acquired companies and the brands they’re already selling.

Temprano more than doubled NSG’s profit year-over-year, according to Cutts. “That told us we could replicate this process over and over again,” she adds. “And that’s what led us to our Waytek acquisition.”

The company also announced plans for an aggressive partner recruitment program to be rolled out in 2018. While the details of the program weren’t immediately available, Cutts says there are big plans for it. “We want to find a way to do something exciting,” she says. “We want to grow our network of partners, we want to grow our network of MSPs and VARs, and we want to incentivize them to work with us.”

Waytek’s Plans

For the New Jersey-based Waytek, the company plans to concentrate on its managed services side. “We were excited when NSG approached us about purchasing our distribution arm,” Brian McDonnell, president of Waytek, said in a prepared statement.

Brian McDonnell

“We appreciate our loyal customers, but we have decided to focus on the managed services side of our business as opposed to software distribution,” he continued. “NSG will provide the top-notch service and support our clients deserve resulting in a total win-win.”

Waytek Software will continue to distribute the same brands as in the past, while customers will gain access to a larger sales team. The acquisition adds Waytek’s Avast Business product line to NSG’s portfolio, bringing along its impressive cybersecurity network boasting more than 400 million endpoints. Luke Walling, General Manager of NSG and owner of Temprano says Avast will be a core focus of the company’s future strategy.

Avast will be added to the company’s lineup of brand offerings including ESET, Sophos, Netshield, Barracuda, and more.