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

Joe Tucci EMC
frustration_anger_irritation_annoyance pain

Felipe Costa

Pressure to perform for stock market bearing down on disties
Columns of coins in the cloud

Michael Cote

Anything that simple to use has got to be complex to set up
Internet of Things

Features

Alistair Darling and Alex Salmond debate Scottish independence
You keep the call centres, Hamish, we'll take the banks
Internet of Things
Everyone loves those Things, just not on each others' terms
No email? No CRM? No Daily Mail iPad edition? You need a plan
Sinofsky's hybrid strategy looks dafter than ever