Action grabs GlobalServe supply deal from SCH
£15m over 3 years
Updated Action Computer Supplies, currently enjoying a return to the black, has grabbed the UK supply contract for GlobalServe, a US company that specialises in IT management for multinationals.
Action has grabbed the business from Compelsource, the former desktop services business of Compel. Compelsource lost the contract after it was bought by Specialist Computer Holdings in March.
The GlobalServe business is valued at £15 million over the three-year run of the contract.
GlobalServe is obviously not happy with SCH owning Compelsource, or maybe SCH is not happy with Compelsource being part of GlobalServe. SCH doesn't have too much need for international reseller consortiums - not in Europe anyway.
You might think Action is not exactly a bluechip kind of organisation when it comes to handling IT procurement for major multinationals but Jonathon Edwards, GlobalServe CEO, said: "The management team showed a real understanding of how to integrate its systems with our won while its mature distribution capability, customer orientation and commitment to supply chain automation will ensure early success."
Action has just posted a return to profit after a spell in the red last year. Pre-tax profit for the six months to 28 February is £400,000 on flat sales of £137 million.
The deal may help Action repel takeover bids - it is understood to have had recent approaches from one unnamed company and Dixons Stores Group. But the £15 million, over three years, isn't so great a sum that it will really help.
Action has posted a statement about takeover speculation - no business has made a proposal.
This is what the company says: "The Board of Action plc ("Action") notes the recent press speculation regarding a possible bid for Action. The Board reiterates that no proposal has been made to acquire Action.
The Board is committed to Action's strategy of refocusing its business to ensure its long term growth as explained in the interim results released today."