IT distributor Synnex has made its second acquisition in less than a week, announcing Feb 27 that it plans to acquire the assets of another IT distributor, PC Wholesale, a wholly owned division of Insight Direct USA, in a deal worth about $30 million.
The deal gives Synnex, based in Fremont, Calif., a foothold in the vertical market for end-of-life and refurbished equipment—a specialty of PC Wholesale. Synnex President and CEO Robert Huang said PC Wholesale's line of products was complementary to Synnex's own core distribution business.
"Through this acquisition we will increase our customer base and provide additional services for our OEM partners, two important goals in our growth strategy," Huang said in a statement.
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Synnex will pay a purchase price of $10 million plus about $20 million for net assets acquired, for a total of $30 million. The company said it expects the transition of the business to close on Feb. 27 and the sale of net assets to close on March 2.
In the 12 months ending Dec. 31, 2006, PC Wholesale's revenues totaled $224 million. Synnex said it does not expect to retain the entire revenue run rate of the PC Wholesale business after the deal closes, primarily due to duplications of customer base.
On Feb. 22, Synnex acquired Philippines-based call center services provider Link2Support. Financial terms of that deal were not disclosed but are expected to be available in the distributor's next quarterly earnings report.
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