Systemax acquires CompUSA Feb 1, 2008 12:00 PM
, Tim Parry and Jim Tierney
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Computers manufacturer/marketer Systemax has entered into an agreement to purchase the CompUSA brand, trademarks, and e-commerce business. The direct cost of the acquisition, expected to close this quarter, will be about $30 million.
Port Washington, NY-based Systemax will run CompUSA as a complementary business to its TigerDirect operation. In fact, it plans to launch a CompUSA catalog as early as March.
The company will also purchase up to 16 CompUSA locations in Florida, Texas, and Puerto Rico, says Gilbert Fiorentino, CEO of TigerDirect. Further, Systemax will also rebrand its 11 TigerDirect retail stores in Florida, Illinois, North Carolina, and Ontario with the CompUSA name.
CompUSA announced in March that it would liquidate 126 of its retail locations last spring. It sold the final 103 to an affiliate of the Gordon Brothers Group last month.
Although it will no longer operate TigerDirect-branded stores, Systemax will continue to run the TigerDirect Website and catalog. “TigerDirect is within the top 10 computer e-commerce sites and top-50 e-commerce sites, so we obviously want to keep the name,” Fiorentino says.
Miami-based TigerDirect will run the CompUSA e-commerce site, and the new catalog, which will be similar to its own twice-monthly 68-page book, Fiorentino says. “In our heart we're a catalog brand, and we look forward to exploring additional ways to promote the CompUSA name.”
