Feeds

Inacom Vanstar deal creates world's biggest reseller

Job cuts galore

  • alert
  • submit to reddit

The essential guide to IT transformation

Inacom has emerged as the winner in the race to acquire Vanstar, the US reseller with the very public for sale tag around its neck. The combined group will be the world's biggest product reseller, with $7 billion annual billings and 12,000 staff. Inacom will gouge out $150 million cost savings through economies of scale. With Vanstar under its belt, the company has the kind of critical mass to enhance its growth potential. As if it weren't big enough already. What dows this say for the economies of scale for an Elcom -say - which has to make do with revenues of a mere $1 billion or so. Inacom anticipates a one-off hit of $120 -$155 million will pay for redundacies, purchase commitment cancellations, and elimination of duplication functions and facilities. On completion of the acquisition, Inacom will front up an additional $40 to $80 million to "align the combined companies' operations to meet the changing conditions of the industry". This sounds like management speak for even more redundancies. Vanstar has already announced a restructuring charge of $50 million for its Q2. For tax reasons, the Vanstar takover is constructed as a merger or pooling of interests. Vanstar shareholders will get 0.64 shares of Inacom common stock for each share of Vanstar Common stock. Warburg Pincus, ownere of 38 per cent of stock have voted in favour of the deal. Inacom expects the transaction will be accretive to earnings by the end of 1999. ® Vanstar seeks reseller divestment

Build a business case: developing custom apps

More from The Register

next story
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Premier League wants to PURGE ALL FOOTIE GIFs from social media
Not paying Murdoch? You're gonna get a right LEGALLING - thanks to automated software
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
XBOX One will learn to play media from USB and DLNA sources
Hang on? Aren't those file formats you hardly ever see outside torrents?
Class war! Wikipedia's workers revolt again
Bourgeois paper-shufflers have 'suspended democracy', sniff unpaid proles
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.