Feeds

Micro Warehouse flogs North American ops

Bargain basement

  • alert
  • submit to reddit

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. ®

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
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?
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.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.