The ink on the paper for the Acrodex acquisition hadn’t dried yet and PCM – also known as PC Mall Inc. – has concluded another deal to obtain the business-to-business assets of Systemax’s North American Technology Group (NATG) which will include the TigerDirect retailer in Canada and the U.S.
The purchased price was released at $14 million in cash. PCM announced it not acquire cash, accounts receivable, inventory or trade payables in connection with the transaction.
TigerDirect.com has six locations in Canada, all in the province of Ontario, and recently added four unexpected product categories to their portfolio: home decor, furniture, pool supplies, and luggage.
Under the terms of the agreement, PCM will acquire the right to hire approximately 400 B2B sales representatives located across the U.S. and Canada, all rights to the NATG B2B customer list. Similar to the Acrodex positioning, PCM expects this deal will enhance the company’s footprint in the SMB, as well as in the educational and public sector markets.
Frank Khulusi, PCM’s Chairman and CEO said the acquisition further leverages the operating infrastructure and expands the customer base.
Khulusi added the Canadian assets will complement the recent Acrodex acquisition, which is more concentrated on the enterprise and government side of the market, and the combination creates a broad-spectrum full-service market solution for vendors and customers in Canada.
“After we absorb the costs of bringing on this sales team, we expect their performance to ramp during 2016, and we expect the acquisition to contribute nicely to our revenue and to be meaningfully accretive to our 2016 bottom line operating results beginning in the second quarter. We should be able to give more color on these wonderful prospects as we integrate this acquisition,” Khulusi said.
Systemax announced it will close its three remaining retail stores and its NATG distribution centre, and after the sale and transition services agreements with PCM are completed, will completely exit its remaining NATG operations.
In 2008 and 2009, TigerDirect’s holding company Systemax made bang, bang acquisitions of retail rivals CompUSA and Circuit City.
This deal is PCM’s third in 2015. This past March PCM acquired the assets of En Pointe Technologies Inc., a solutions provider based in Gardena, Calif., for $15 million.
PC Mall has Canadian operations in Montreal called PCM Sales Canada Inc. The company started its Canadian operations in 2013 initially serving U.S.-based customers.