Systemax to buy CompUSA brand, 16 retail outlets
The deal, expected to cost $30M, will be completed by late March
January 09, 2008 (Computerworld) -- Systemax Inc. said it has agreed to buy the CompUSA Inc. brand, trademarks, e-commerce business and up to 16 retail outlets (download PDF).
The deal, expected to close by the end of the first quarter, will cost about $30 million, depending on the locations of the stores ultimately taken over, according to the company.
Last month, computer and electronics retailer CompUSA said that it would start winding down its retail operations after being acquired by an investment firm that was looking to sell the company's business and assets.
Systemax said the CompUSA acquisition will complement its TigerDirect Inc. business. TigerDirect, like CompUSA, is a computer and computer products retailer.
TigerDirect currently operates 11 retail outlets in Florida, Illinois, North Carolina and Ontario. Systemax is looking to add CompUSA stores in Florida, Texas and Puerto Rico, according to the statement. The CompUSA stores will be integrated into TigerDirect's retail operations as they are acquired.
According to Gilbert Fiorentino, CEO of TigerDirect, CompUSA.com's customer base will augment the customer base of TigerDirect.com, and the CompUSA retail stores will boost 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 in the statement. "We anticipate hiring many experienced CompUSA employees, preserving hundreds of store management and sales positions and making us stronger and better in the process."
Until the deal is closed, CompUSA's Web site and retail operations will continue operating under the current CompUSA management team. Once the acquisition is finalized, the CompUSA.com Web site will operate under the Systemax group of e-commerce Web sites.