How Does ALSO Holding Company Work?

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How Does ALSO Holding Company Work?

ALSO Holding AG is a major player in the ICT sector, acting as a B2B marketplace. They connect vendors with resellers across Europe and globally.

The company recently reported strong financial performance, with revenue up 35% to 6.9 billion euros in the first half of 2025. This growth highlights their significant market presence and operational efficiency.

ALSO operates in 31 European countries and 144 countries worldwide through PaaS partners. They offer a wide range of hardware, software, and IT services, connecting over 800 vendors with more than 135,000 resellers in over 1,570 product categories. Their focus on high-growth areas like cloud, AI, and cybersecurity is key to their strategy. Understanding their business model is essential for anyone involved in the ICT supply chain, especially with their recent emphasis on AI and cloud solutions. A deeper look into their operations reveals how they maintain profitability and market leadership, including insights from an ALSO Holding Porter's Five Forces Analysis.

The ALSO Holding Company operates as a central business-to-business marketplace within the Information and Communication Technology (ICT) sector. It connects a vast network of vendors with resellers, offering a broad spectrum of hardware, software, and IT services to facilitate digital transformation for businesses.

Core Business Segments

The ALSO Group structure is built around three primary operational pillars: Supply, Solutions, and Service/Cloud. These segments work in synergy to provide a comprehensive offering to its partners.

Value Proposition for Resellers

ALSO provides resellers with access to over 800 vendors and more than 1,570 product categories. This extensive portfolio, combined with robust support, simplifies procurement and delivery of complex IT solutions.

'Supply' Segment Focus

This segment handles the transactional aspects of hardware and software distribution. It ensures efficient logistics and product availability, forming the backbone of the ALSO business model.

'Solutions' Segment Role

Here, ALSO assists resellers in designing and implementing intricate IT environments. This includes developing new offerings in emerging areas like IoT, security, and virtualization.

The 'Service/Cloud' segment is a key growth driver for the ALSO Holding Company, focusing on subscription-based services and the development of digital platforms. This segment has seen significant expansion, with its cloud platform user base growing by 34% to 5.5 million in the first half of 2025. This demonstrates the company's commitment to evolving its technology solutions and adapting to market demands for cloud-based services.

Operational Excellence and Integration

ALSO's operational efficiency is powered by advanced logistics, financial services, and IT support. The company's supply chain is optimized for cost and portfolio management, contributing to strong financial performance.

• Efficient logistics and product availability.
• Support for complex IT landscape design and deployment.
• Development of new digital platforms and services.
• Focus on subscription-based 'as-a-service' models.
• Strategic integration of acquired companies to enhance scalability.

The company's competitive edge is further sharpened by its 'transformative integration' program, which systematically harmonizes and develops acquired entities. This strategic approach enhances scalability and market reach, contributing to the overall strength of the Growth Strategy of ALSO Holding. By fostering a broad ecosystem and leveraging digital platforms, ALSO simplifies the procurement and delivery of complex IT solutions, thereby creating a sustainable environment for the ICT sector and offering distinct advantages to its partners.

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The ALSO Holding Company operates with a multifaceted approach to revenue generation, primarily driven by its distinct business segments: Supply, Solutions, and Service/Cloud. This diversified model allows the company to capture value across various stages of the IT product and service lifecycle.

Supply Segment Dominance

The Supply segment is a significant revenue driver for the ALSO Holding Company. In the first half of 2025, this segment saw a substantial increase of 50% year-over-year, highlighting its critical role in the company's overall financial performance.

Growth in Solutions

The Solutions segment also demonstrated robust growth, with revenues rising by 16% in the first half of 2025. This indicates a successful expansion of the company's value-added offerings and integrated IT solutions.

Ascending Services Revenue

The Services segment experienced a notable climb of 26% in the first half of 2025. This growth reflects the increasing demand for the company's comprehensive IT services and support.

Cloud Monetization Surge

Within the Services segment, Cloud revenue is a key indicator of the company's digital transformation strategy. In the first half of 2025, Cloud revenue grew by 28% to 845 million euros, with unique users increasing by 34% to 5.5 million. Monetization within this segment also rose by 8% to 262 million euros.

Full Year 2024 Performance

For the entirety of 2024, the company reported net sales of approximately 11.0 billion euros. This figure underscores the substantial scale of operations for the ALSO Holding Company.

Strategic Shift to Digital

There is a clear and consistent trend of increasing revenue from the Service and Cloud segments. This strategic direction emphasizes a move towards subscription-based models and digital platform offerings, which are becoming increasingly vital for sustained growth.

The monetization strategies employed by the ALSO Holding Company are diverse, focusing on facilitating product sales through a B2B marketplace and offering recurring revenue through subscription-based cloud solutions. Furthermore, the company leverages its expertise in delivering a wide array of value-added IT services. The company's digital platforms, which are integral to its operations and cover areas such as IoT, Cybersecurity, Virtualization, and AI, are central to these monetization efforts. These platforms enable effective cross-selling and the bundling of various services, creating a more comprehensive offering for its clients. This focus on operational excellence and the strategic development of its digital platforms has been a primary driver behind the company's positive financial outcomes, with its cloud platform making significant contributions to its overall success. Understanding these revenue streams and monetization strategies is key to grasping the Revenue Streams & Business Model of ALSO Holding.

Key Revenue Drivers and Growth Areas

The company's revenue streams are robust and show a clear upward trajectory, particularly in its digital and service-oriented offerings. The overall revenue growth of 35% in the first half of 2025, reaching 6.9 billion euros, with an organic growth of 8%, demonstrates strong market performance.

• Supply revenue saw a 50% increase in H1 2025.
• Solutions revenue grew by 16% in H1 2025.
• Services revenue climbed by 26% in H1 2025.
• Cloud revenue reached 845 million euros in H1 2025, a 28% increase.
• Cloud user base expanded by 34% to 5.5 million in H1 2025.
• Cloud monetization increased by 8% to 262 million euros in H1 2025.
• Full year 2024 net sales were approximately 11.0 billion euros.
• Cloud revenue in 2024 was 1.133 billion euros, up from 866 million euros in 2023.

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The ALSO Holding Company has evolved significantly, transforming from a transactional distributor into a technology-focused solutions provider. This evolution is marked by strategic investments in digital platforms and a robust inorganic growth strategy, integrating numerous acquisitions to expand its market presence and service offerings.

Key Milestones and Transformation

Over the last 14 years, ALSO Holding AG has transitioned into a leading technology provider by establishing a solution-oriented business unit and developing digital platforms. This strategic shift underpins its growth and market positioning.

Inorganic Growth Strategy

The company has a proven track record of inorganic growth, successfully integrating 27 acquisitions in the past decade. Its 'transformative integration' program ensures efficient and systematic harmonization of acquired entities.

Market Expansion and Operational Resilience

Strategic partnerships, such as the planned integration with Westcoast in early 2025, aim to bolster market position in key regions like the UK, Ireland, and France. Despite market challenges in 2024, such as subdued purchasing in Germany and Poland, ALSO has leveraged growth in commercial business segments in France, Norway, and Sweden.

Competitive Advantages

ALSO's competitive edge stems from its extensive ecosystem of over 135,000 resellers and 800 vendors, offering significant market reach. Its focus on high-growth technology areas like cloud, AI, and cybersecurity, coupled with a strong cash position of approximately 731 million euros at the end of 2024, supports continuous investment and innovation.

Technological Innovation and Financial Strength

The company actively invests in future technologies, allocating €5 million to research and development in 2023 and establishing the 'ALSO Innovation Lab' to foster startup collaborations. This commitment is reflected in its proposal for a 13th consecutive dividend increase for 2025, underscoring its sustained financial performance.

• Focus on high-growth technology areas: cloud, AI, IoT, cybersecurity.
• Significant user growth on its cloud platform.
• Investment in R&D: €5 million in 2023.
• Introduction of the 'ALSO Innovation Lab'.
• Strong cash position: around 731 million euros (end of 2024).
• Proposed 13th consecutive dividend increase for 2025.
• Strategic acquisitions to expand offerings and market reach.
• Adaptation to new technology trends and shifts.

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The ALSO Holding Company is a significant player in the European ICT sector, holding a strong market position. Despite facing risks like regulatory changes and competition, the company is focused on strategic growth through digital platforms and acquisitions.

Industry Position

ALSO Holding AG is the largest European technology provider for the ICT industry, operating across 31 European countries. As of 2023, it commanded approximately 10% of the European IT distribution market share. Its extensive network includes over 135,000 resellers and more than 800 vendor partnerships, fostering strong customer loyalty and a wide global reach.

Risks and Headwinds

The company navigates potential risks such as evolving regulations, intense competition, and technological shifts impacting IT spending. In 2024, some markets experienced subdued purchasing, which affected revenue, though ALSO mitigated this through diversification and operational efficiency. Increased financial expenses and working capital fluctuations can also impact earnings and free cash flow.

Future Outlook and Strategy

Looking ahead, ALSO is committed to its growth strategy, targeting an EBITDA of 285 to 325 million euros and a ROCE of over 17% by 2025. For the medium term (3-5 years), it aims for an EBITDA between 425 and 525 million euros and a ROCE exceeding 25%. This involves continued investment in digital platforms like Cloud, AI, IoT, Cybersecurity, and Virtualization, alongside strategic acquisitions.

Strategic Initiatives

Key initiatives include leveraging technological advancements and maintaining financial robustness to seize market opportunities. The planned acquisition of Westcoast in 2025 is set to strengthen its presence in the UK, Ireland, and France. The company's focus on AI for operational excellence and expanding digital offerings highlights its proactive approach to sustained growth within the dynamic ICT sector.

Key Financial Targets

ALSO Holding AG has set ambitious financial goals to drive future performance and shareholder value. These targets reflect a commitment to profitable growth and operational efficiency.

• 2025 EBITDA target: 285 to 325 million euros
• 2025 ROCE target: More than 17 percent
• Medium-term (3-5 years) EBITDA target: 425 to 525 million euros
• Medium-term (3-5 years) ROCE target: Over 25 percent

Understanding the Target Market of ALSO Holding is crucial for grasping its operational flow and how the ALSO Holding Company generates revenue. The company's business model is deeply integrated into the ICT supply chain, acting as a vital link between vendors and resellers.

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