Changing The Business Services Game
Office Depot has struck an agreement to acquire systems integration powerhouse CompuCom for approximately $1 billion, the company said Tuesday, as the mega-retailer shifts toward the business and technology services industry.
By joining forces with the Charlotte, N.C.-based solution provider, which works with six of the top 10 Fortune 500 firms, Office Depot attains an instant, established IT services presence in North America – a "fragmented" market valued at $25 billion, according to the office supplies specialist.
"That's a big deal," said Martin Wolf, president of martinwolf M&A Advisors of Walnut Creek, Calif., one of the top channel investment advisory deal-makers. "CompuCom's business has changed over time. But they have a big robust services business, and that's interesting. Any transaction has risks. They're clearly identified. And if they execute well, they'll be fine."
With the deal expected to close by the end of the year, CRN highlights 10 aspects of this potentially game-changing transaction that the channel needs to know.