Systemax Inc. says it will sell certain assets of subsidiary company Misco Germany, including its customer file, to Cancom SE. Cancom adds 45 Misco Germany employees and says the purchase will expand its direct sales force.
The transaction, which was announced Monday, is expected to close in August pending regulatory approval. Terms were not disclosed.
Misco Germany sells computers and electronics to businesses online and via catalogs. Cancom provides information technology services, infrastructure, software and hardware in Germany and Austria.
“With the sale of our German business to Cancom SE we have found a terrific home for all of our German employees and customers,” says Larry Reinhold, CEO of Systemax. “Germany has been our most challenged market for a number of years and this transaction will have a positive impact on the future overall financial performance of our EMEA and consolidated operations.”
Companies in Systemax’s EMEA (Europe, the Middle East and Africa) Technology Products Group are resellers of I.T. hardware, software and applications to small and medium-size, enterprise, and single-owner home office, or SOHO, businesses. Its primary subsidiaries, Global Industrial, Misco and Inmac Wstore, offer branded I.T. and related products from manufacturers of personal computers, notebooks, consumer electronics, accessories and supplies.
Systemax retains the rest of its Misco businesses, including dedicated websites in Denmark, France, Italy, Netherlands, Spain, Sweden and the United Kingdom.
Systemax, No. 41 in the 2016 B2B E-Commerce 300, has changed its business model since early 2015 as it exited the online retail business to focus on its growing source of revenue: business-to-business customers.
Systemax shuttered its final three TigerDirect retail stores and stopped operating its TigerDirect branded e-commerce sites in early 2015. These were the U.S.-based TigerDirect.com and related e-commerce sites that sell to consumers in Canada and Puerto Rico, as well as the B2B e-commerce sites biz.TigerDirect.com, GlobalComputer.com and GlobalGovEd.com, which sell computers and other technology products to businesses, schools and government agencies. The businesses were part the company’s North American Technology Group.
PCM Inc. purchased the TigerDirect businesses from Systemax in November 2015, and now operates the e-commerce sites along with other PCM online businesses. PCM, No. 106 in the B2B E-Commerce 300, sells computers and electronics to businesses and consumers
Systemax generated $3.0 billion in B2B e-commerce sales in 2015, up by 15.4% from $2.6 billion in 2014, and PCM had an estimated $1.03 billion in B2B e-commerce sales, according to Top500Guide.com.
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