Analyst at Oppenheimer provided their key takeaways from WESCO International, Inc.’s (NYSE:WCC) management meeting, which was focused on the overall post-merger extensibility of scale benefits in distribution and digital/IT investment to drive margin and growth momentum into markets with secular drivers.
According to the analysts, digital investment remains a deal case centerpiece, with post-merger economies of scale enabling affordability ($120 million/year capex and opex investment in PP&E and IT vs. $90 million pre-merger pro forma).
The company’s IT architecture includes best-fit vended products for each of front/middle/back-end solutions, with proprietary integration to establish tools and systems for a vast data pool tying information about suppliers, product inventory, and customer consumption to drive differentiated analytics and enable nonlinear benefits of scale.