Feeds

Action stations for Dixons bid?

Insight-less

  • alert
  • submit to reddit

The essential guide to IT transformation

Dixons is preparing to bid for Action Computer Supplies, the big but ailing direct marketing computer reseller, the Financial Mail on Sunday reports.

The electrical retail giant looks like it wants to do a friendly deal, as it has made 'friendly approaches to Action', the newspaper says. Action, a B2B supplier, would fit in nicely with Dixons PC World Business direct marketing operation.

Dixons last month announced its intention to become Britain's biggest supplier of computer goods and services to small businesses by 2004. Business sales already account for £400m of Dixons turnover, according to trade paper Microscope.

Action's market cap has dwindled to a humiliating low of less than £7 million, on the back of some nasty profit warning surprises. At a valuation like this, the company is better off being owned by someone else - or, less likely, taking itself private.

Last year the company lost £6.7m on sales of £276m.The company says that £50m-worth of sales were made over the Internet.

Action could also further Dixons' growing European ambitions, as it has it has a fairly large business in Spain.

Action has effectively been up for sale since 1999, when it was jilted at the altar by Insight Enterprises, the giant American direct marketer. Insight walked away, after Action's profitability took a sudden nose dive in the middle of due diligence.

Insight is already active in Europe, on the back of a couple of acquisitions. Last week the company announced its choice of Sheffield, UK as the choice of its European headquarters. The Financial Mail on Sunday speculates that Action could be on the table again for Insight - especially now that the British company's share prices is just a tenth of when it last made a bid approach.

But considering how Insight walked away from an agreed deal last time around, creating huge embarrassment and (at least temporary) instability for its supposed acquisition, it would seem difficult for this company to earn the trust of Action's board again. ®

Action doubles online business to £50m
Action stations for bid approach

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Facebook, Google and Instagram 'worse than drugs' says Miley Cyrus
Italian boffins agree with popette's theory that haters are the real wrecking balls
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
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.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.