Systemax To Acquire CompUSA Brand, Some Stores
By TWICE Staff -- TWICE, 1/6/2008
Port Washington, N.Y. — Systemax announced on Sunday that it had entered into a definitive agreement to acquire selected assets and retail stores of CompUSA.
Completion of the transaction is subject to customary closing conditions and is expected to close at several dates throughout the first quarter of 2008.
Under the agreement, Systemax will purchase the CompUSA brand, trademarks and e-commerce business, and as many as 16 CompUSA retail outlets, according to a release.
“We believe the value of the CompUSA brand remains very high,” said Richard Leeds, CEO of Systemax. “The company has a long legacy of value pricing, service and customer loyalty among consumers nationwide. We view this acquisition as a strong complementary business to our TigerDirect operation.”
TigerDirect is a subsidiary of Systemax.
According to TigerDirect CEO Gilbert Fiorentino, CompUSA.com’s customer base enhances that of TigerDirect.com and the CompUSA retail stores will strengthen the company’s planned retail expansion.
“Millions of loyal customers will come to the Systemax and TigerDirect family of businesses through this acquisition,” Fiorentino said. “We anticipate hiring many experienced CompUSA employees, preserving hundreds of store management and sales positions and making us stronger and better in the process.”
As the select CompUSA retail stores are acquired, they will reportedly be integrated into TigerDirect’s existing retail operating environment.
Until the agreement is closed, CompUSA’s Web site and retail operations will continue to operate under CompUSA’s existing leadership. Once the acquisition is completed, a new CompUSA.com Web site will operate within Systemax’s family of ecommerce Web sites.
The direct costs of the acquisition will depend on the specific retail store locations that are ultimately taken over and are expected to approximate $30 million, according to Systemax.“The indirect costs of the acquisition — primarily integration and recruiting costs, legal fees, inventory purchases, and other expenses — will be incremental to the direct costs,” it said.
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