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
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