Feeds

Action stations for Dixons bid?

Insight-less

  • alert
  • submit to reddit

Security for virtualized datacentres

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

Security and trust: The backbone of doing business over the internet

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Why Oracle CEO Larry Ellison had to go ... Except he hasn't
Silicon Valley's veteran seadog in piratical Putin impression
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
Bono: Apple will sort out monetising music where the labels failed
Remastered so hard it would be difficult or impossible to master it again
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.