Best Buy has reached an agreement to acquire MindShift Technologies, a managed service provider (MSP) for small and midsized businesses, for $167 million.
MindShift provides Cloud services, data-center services and professional services to more than 5,400 clients and 25,000 managed desktops in key markets throughout the United States.
In a statement, Best Buy said the combination of MindShift’s capabilities and Best Buy’s points of distribution through its retail, Geek Squad services and Best Buy For Business operations is expected “to create a competitive advantage that would provide an opportunity for the two companies to capture greater share within the estimated $40 billion small and midsized business MSP market.”
Through the acquisition, Best Buy will help MindShift expand its capabilities for current and future clients in such industries as legal, healthcare, financial, non-profits, associations and education. Like Best Buy’s purchase of Geek Squad in 2002, the goal of the acquisition is to support and leverage the proven MindShift business model while giving its management the freedom and resources to grow.
MindShift will continue to operate under its current name, management team and capabilities, which currently include 500 employees at offices in Boston; Commack, N.Y.; Minneapolis; Morrisville, N.C.; New York; Philadelphia; and Washington.
The transaction, which is expected to close on or around calendar year-end, is subject to customary closing conditions.