martinwolf
Transaction Analysis
Systemax Announces Sale of Certain B2B Assets of Its North American Technology Group to PCM
Financial Information
- Transaction Size $14 million plus retained assets
(AR, inventory, trade payables)
Transaction Facts
- Systemax (NYSE: SYX) and PCM, Inc. (NASDAQ: PCMI) announced today a definitive agreement in which PCM would acquire only certain B2B assets of Systemax's North American Technology Group, including the TigerDirect brand. martinwolf advised Systemax in this transaction.
- PCM is acquiring the right to hire approximately 400 B2B sales representatives.
- The transaction also includes all rights to the NATG B2B customer list, and certain contracts, intellectual property rights, and fixed assets and equipment.
- The transaction is expected to close Dec. 1.
Expanding A Footprint And Driving Growth
- Focusing on Other Endeavors: In the press release, Systemax Chairman and CEO Richard Leeds stated that this acquisition allows Systemax to focus its time and resources on its other businesses. Following the transaction, it will close its three remaining retail stores and its NATG distribution center, and exit its remaining NATG operations.
- Positive Response: In early trading, Systemax's share price is up approximately 6 percent.
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Building PCM's SMB Presence
: PCM Chairman and CEO Frank Khulusi cited the acquisition's impact expanding PCM's customer base, particularly in the SMB sector. He also cited the transaction's potential for complementing PCM's purchase of martinwolf client Acrodex earlier this year.
- Positive Impacts for 2016 Results: After PCM absorbs the costs of bringing on the sales team, it expects performance to ramp up in 2016 and for the transaction to be meaningfully accretive to its 2016 bottom line.
For more information about this transaction
, click here to read the press release.
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With offices in the San Francisco Bay Area, martinwolf is a leading M&A Advisory focused on middle market companies in the IT Services, IT Supply Chain, IT-Enabled Business Process Outsourcing and Software as a Service (SaaS) space. Since 1997, our team has completed more than 140 transactions in nineteen countries and sold seven divisions of Fortune 500 companies. The firm is also a presenting sponsor of the Global IT M&A Forum. martinwolf is a member of FINRA and SIPC. For more information, visit www.martinwolf.com. To learn more about martinwolf, contact Matthew Putzulu at [email protected]. © martinwolf 2015 |
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