Feeds

Computacenter returns to Germany

Buys GE Compunet

  • alert
  • submit to reddit

Computacenter is returning to Germany in style, by buying GE Compunet, the country's biggest reseller. As a bonus it gets a leading position in Austria too.

The price is a steal, even in these depressed times for resellers. CC is splashing out £36m upfront for the GE CompuNet and GE Capital IT Solutions Austria businesses on completion. And it will pay up to a further € 64 million (£41 million)"contingent on the financial performance of the businesses being acquired over 2003 and 2004". In other words it is probably paying out of profits generated by GE Compunet.

Computacenter is now comfortably Europe's biggest reseller group, with No 1. slots in the UK and Germany and a top five position in France. For scale, arch-rival Specialist Computer Holdings is its only close competitor in Europe.

Computacenter withdrew from Germany at the start of the year, citing lack of scale. It sold its German operations to GECITS (GE Capital IT Solutions as the reseller group is called in full) as part of a deal which saw it buy its rival's UK and French service ops.

Finally, this looks like the end of GE Capital's expensive dalliance with the computer reselling market in Europe (it remains a big player in North America). GE Capital thought it could make more money than rivals, because it had access to cheaper money. It also thought it could make more money than rivals by acting as a consolidator through acquisition. After all, the techniques had worked in several logistics sectors. They did not work in the European reselling market: except for Germany, GECITS never acquired a commanding position in any country.

Computacenter press release

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
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.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.