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Computacenter makes blockbuster US acquisition

about 6 years ago by Lucy Cinder

Computacenter makes blockbuster US acquisition

Information Technology

UK's largest reseller/services outfit is buying FusionStorm for up to $90m

In line with market rumours that have been swirling for over a year, Computacenter has made a significant play for the US market by gobbling $600m-revenue reseller FusionStorm.

Computacenter will pay an initial cash consideration of $70m and up to an additional $20m in differed payments for the San Francisco-based firm. It will also contribute $45m to refinance FusionStorm's existing facilities.

Computacenter CEO Mike Norris - who this summer played down the likelihood of a deal happening imminently - said the move would boost its ability to serve international customers and extend its reach into the US market.

Computacenter launched into the US in 2017 to serve European customers with a presence on the other side of the pond.

Computacenter said FusionStorm will boost its US headcount by 50 per cent.

One FusionStorm employee not staying on, however, is its CEO, Dan Serpico, who will hand his role over to existing Computacenter US CEO Mike Keogh over the coming months.

Rumours that Computacenter was plotting a big US acquisition first surfaced last July.

Norris said: "This transaction broadens our capability to serve our international customers and should enhance our existing customer offer and reach into the US marketplace, whilst providing an opportunity to improve the long-term prospects for the employees of FusionStorm and Computacenter US."

Serpico added: "Computacenter, as one of the leaders in our marketplace, offers an exciting opportunity for our employees as well as security, range of services and international coverage for our clients and partners. Out of many potential suitors, Computacenter stood out for their great cultural fit and I am very proud that we can start the next step in our company's journey as part of this great business."

For the year ending 31 December 2017, FusionStorm reported turnover of $595m, with a profit before tax of $3.9m.

Computacenter however said that this profit number includes $5.2m of interest costs, which it expects to "materially reduce" as a result of the refinancing.

The firm said that implementing various cost cutting measures would see FusionStorm's EBITDA for that year rise from $9.8m to $12.1m.

Source channelweb

Industry: Information Technology News

 

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