Compucom closes Entex buy
It's $137 million greenbacks
CompuCom Systems has finally clinched a deal to buy the $1.8 billion Technology Acquisition Services division (TASD) of Entex Information Services. The $137 million cash sale ended months of speculation. It will push Dallas-based network integrator CompuCom to a decent size to compete in the hardware business. Entex will meanwhile be switched into a $500 million services only operation, according to Computer Reseller News. The acquisition included CompuCom hiring some of the arm’s inside sales force and account centre personnel in Ohio, and buying its Kentucky configuration and distribution centre. John Lyons, TASD president, will join CompuCom as V.P. of sales. ComputCom CEO and president Ed Anderson said product volume would result in a 2 or 3 per cent rise in gross margin for the company’s product sales. He described the buy out as "a textbook case of consolidation". "We like this acquisition because it helps us expand and leverage our co-location, extranets and virtual sales model with a great customer list in a Fortune 500 market," said Anderson. Entex said it would concentrate on growing its services business. The move follows Compaq’s announcement earlier this week to streamline its US distribution into four players, effective from August 1. Go here to see it. CompuCom said it would be used by the US vendor for major accounts.® Want to email Linda Harrison?
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