The Channel logo

News

By | Drew Cullen 20th August 2007 20:41

PC Mall buys Sarcom on the cheap

Enterprise play

PC Mall, the California-based direct marketing reseller, is to acquire Sarcom - "one of (America's) largest independent IT solution providers" - for $55m. More or less: some $19.6m of the purchase price is contingent on net assets declared by Sarcom. So the money could move up or down, depending on what the auditors find out.

The upshot is that PC Mall is paying about $35m net for a company with $250m annual revenues. Of course, Sarcom could be loaded with debt - there's no mention in the press statement. Or it simply means that Sarcom is at best a low-profit business.

Profits or no profits, Columbus, Ohio-based Sarcom operates higher up the value chain than PC Mall - it has all the usual badges: Cisco Gold Partner, HP Elite, Microsoft LAR. And so on. We guess that PC Mall can run the product side of the business more efficiently and claw bigger discounts from suppliers than Sarcom can on its own.

Press release. ®

alert Send corrections

Opinion

Microsoft CEO Satya Nadella
ARA_LIbertad

Chris Mellor

Elliott Management sinks its teeth into retiring godhead
Satya Nadella
cloud computing Fight

Features

Failure to crack next-gen semiconductors threatens to set back humanity
SMEs get lip service - what they need is dinner at the Club
SAP Match Insights
Vorsprung durch grossendatatechnik, as we like to say in Germany
Inside the Google Lab where surgeons prepare the human/dog experiment
Big Blue exec tells El Reg what to keep an eye on