The Dicker Data Ltd (ASX: DDR) share price will be on watch on Wednesday after the distributor of information technology products announced the launch of a new business division.
What was announced?
According to the release, the company has launched the Dicker Data Financial Services (DDFS) division this morning.
The company made the move in order to address the growing demand for Device-as-a-Service (DaaS) solutions, Infrastructure-as-a-Service (IaaS) solutions, and the shift from capital expenditure to operational expenditure.
The DDFS business will offer by-the-month payment solutions that can be specifically tailored to suit Dicker Data's partners and their customers' varying needs.
The release explains that partners will be able to choose the option of DDFS financing them directly or their end-users via introduction, subject to credit approval.
Management believes the DDFS business will be uniquely positioned against competing financial solutions from other distributors in the Australian ICT channel. This is because the offering will be underpinned by the company's own balance sheet.
By utilising the only direct financing model in the industry, reseller partners will benefit from Dicker Data's investment into every deal with them, transparency and alignment of common goals at the end of the term, and no predefined product mix requirement.
Dicker Data's chairman and CEO, David Dicker, appeared to be excited to bring this solution to market.
He said: "I'm pleased to bring this unique financing solution to market for our reseller partners. Our success has always been driven by leveraging our in-house expertise and by providing highly differentiated solutions."
This news could be another boost to the high-flying Dicker Data share price. Thanks to a better than expected performance in FY 2018 and a strong start to FY 2019, the company's shares are beating the market with a 77% gain year to date.
This means they are even outperforming market darlings such as Altium Limited (ASX: ALU) and WiseTech Global Ltd (ASX: WTC) in 2019.
