Systemax Announces Definitive Agreement to Acquire Selected Assets and Retail Stores from CompUSA
January 06 2008 - 1:43PM
Business Wire
Systemax Inc. (NYSE:SYX) today announced it has entered into a
definitive agreement to acquire selected assets and retail stores
of CompUSA Inc. Completion of the transaction is subject to
customary closing conditions and is expected to close at several
dates throughout the first quarter of 2008. Under the agreement,
Systemax will purchase the CompUSA brand, trademarks and e-commerce
business, and as many as 16 CompUSA retail outlets. �We believe the
value of the CompUSA brand remains very high. The company has a
long legacy of value pricing, service and customer loyalty among
consumers nationwide,� said Richard Leeds, Chief Executive Officer
of Systemax. �We view this acquisition as a strong complementary
business to our TigerDirect operation.� According to TigerDirect
Chief Executive Officer Gilbert Fiorentino, CompUSA.com�s customer
base enhances that of TigerDirect.com and the CompUSA retail stores
will strengthen the company�s planned retail expansion. TigerDirect
currently operates 11 retail stores in Florida, Illinois, North
Carolina and Ontario, Canada. Pending required approvals, up to 16
CompUSA stores in Florida, Texas and Puerto Rico will be added
during the first quarter of 2008. �Millions of loyal customers will
come to the Systemax and TigerDirect family of businesses through
this acquisition,� Fiorentino said. �We anticipate hiring many
experienced CompUSA employees, preserving hundreds of store
management and sales positions and making us stronger and better in
the process.� As the select CompUSA retail stores are acquired,
they will be integrated into TigerDirect�s existing retail
operating environment. �We have a terrific opportunity to continue
the great CompUSA brand and establish a new heritage that will
extend for generations to come,� Fiorentino added. TigerDirect, a
subsidiary of Systemax, is one of the industry�s top computer and
computer-product retailers. The company�s web site
(www.tigerdirect.com) was ranked as one of the Top 15 online retail
sites for �Customer Focused Excellence� by the Forrester Group in
November 2007 and is consistently in the Top 10 for web traffic
among computer shopping sites as measured by HitWise. Until the
agreement is closed, CompUSA�s web site (www.compusa.com) and
retail operations will continue to operate under CompUSA�s existing
leadership. Once the acquisition is completed, the new, improved
CompUSA.com web site will operate within Systemax�s family of
ecommerce web sites. The new CompUSA.com will feature advanced
searching and enhanced content including photo galleries and videos
on thousands of the most popular PC, TV and consumer electronics
items. The direct costs of the acquisition will depend on the
specific retail store locations that are ultimately taken over and
are expected to approximate $30 million. The indirect costs of the
acquisition � primarily integration and recruiting costs, legal
fees, inventory purchases, and other expenses � will be incremental
to the direct costs. About TigerDirect TigerDirect serves the needs
of personal and business computer users, selling consumer
electronics, computers, digital media technology and peripherals
via retail stores, catalog and Internet channels. TigerDirect is a
subsidiary of Systemax Inc. (NYSE:SYX). Visit www.systemax.com for
more information. About Systemax Inc. Systemax Inc.
(www.systemax.com), a Fortune 1000 company, sells personal
computers, computer supplies, consumer electronics and industrial
products through a system of branded e-commerce web sites, direct
mail catalogs, relationship marketers and retail stores in North
America and Europe. It also manufacturers and sells personal
computers under the Systemax and Ultra brands and develops and
markets ProfitCenter Software, a web-based, on-demand application
for multi-channel direct marketing companies. Forward-Looking
Statements This press release contains forward-looking statements
about the Company�s performance. These statements are based on
management�s estimates, assumptions and projections and are not
guarantees of future performance. The Company assumes no obligation
to update these statements. Actual results may differ materially
from results expressed or implied in these statements as the result
of risks, uncertainties and other factors including, but not
limited to: (a) unanticipated variations in sales volume, (b)
economic conditions and exchange rates, (c) actions by competitors,
(d) the continuation of key vendor relationships, (e) the ability
to maintain satisfactory loan agreements with lenders, (f) risks
associated with the delivery of merchandise to customers utilizing
common carriers, (g) the operation of the Company�s management
information systems, and (h) unanticipated legal and administrative
proceedings. Please refer to �Risk Factors� and the Forward-Looking
Statements sections contained in the Company�s Form 10-K for a more
detailed explanation of the inherent limitations in such
forward-looking statements.
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