US technology supplier PC Mall has agreed to buy Ohio-based Sarcom, an independent IT systems and services provider, for $55m, in order to wrap more value-added services around its IT product sales.
The transaction includes $7.5m in stock and is expected to close in September.
Torrance, California-based PC Mall, which resells over 10,000 products from the likes of Apple, HP, IBM, Lenovo, and Microsoft to business and government organizations through direct and Internet channels, said it was attracted to privately-held Sarcom because of its recent sales performance.
Sarcom, which is based in Lewis Center, reported revenue of $248m last year and sales in the current seven months of this year are running at $162m, which is 23% above the same period a year ago. The company makes its money by providing product procurement, service support, system design, implementation and education, and e-procurement systems and services.
PC Mall prides itself on its rapid delivery system where customer orders are quickly filled by its network of distribution centers that are conveniently located near FedEx shipping hubs. It also ties into an expansive network of distributors.
Many of our manufacturer partners are looking for resellers such as PC Mall to provide a higher level of value in supporting complex solutions in today’s markets, said PC Mall CEO Frank Khulusi.
PC Mall also gets its hands on Sarcom’s Pittsburgh-based consulting and training division, Abreon Group. It also brings on board over 700 Sarcom engineers, technicians, and project managers.
PC Mall employs 1,500 people worldwide and reported profits of $3.96m on $1bn of sales in 2006.