Micro Warehouse, the mail order reseller, is selling its North American business to CDW for $22m.

This is a knockdown price. Micro Warehouse's US customer base generates annual sales of more than $900m, while Canada brings another $40m, and inventory is valued at about $14m, according to CDW, which will become a $5bn t/o business post-acquisition.

It's an asset sale - CDW is not taking on the receivables or the liabilities. Instead, it will act as a debt collector for Micro Warehouse, levying a five per cent handling fee on all money collected owing to the old regime.

The takeover is prompting concern among US competitors, which fear even greater pressure on margins, US channel magazine CRN reports.

CDW's press statement is here. ®