June 16, 2010, 3:12 PM

PC Mall acquires assets of Network Services Plus

The multichannel retailer of computer products extends its managed services business. 

Paul Demery

Managing Editor, B2B E-commerce

Topics: acquisition, PC Mall

PC Mall Inc., a multichannel merchant of computers and related products and services, has acquired substantially all the assets of information technology services firm Network Services Plus Inc., or NSPI, in a move that will enable PC Mall to build on the managed services business it operates through its wholly owned subsidiary Sarcom Inc., the retailer says.

PC Mall acquired NSPI’s assets as of June 8 for an initial purchase price of $7.8 million, less an unspecified amount to settle indemnity claims, PC Mall says. It is also paying NSPI’s remaining debt of about $1.3 million.\

“Growing our services business and enhancing our value proposition in services is a strategic priority for us,” says Frank Khulusi, chairman and CEO of PC Mall, No. 98 in the Internet Retailer Top 500 Guide. “The acquisition of NSPI represents a significant enhancement to our managed services offerings. Their service capabilities are additive to our existing portfolio, and by leveraging NSPI's expertise, tools and management team, we will be able to better position ourselves to add value to our customers on multiple levels.”

PC Mall generated more than $88 million in services revenue last year, Khulusi says. NSPI, which is primarily a provider of hosted data center and managed I.T. services in the southeastern U.S., had unaudited revenue of about $6.4 million for the five months ended May 31, 2010, including about 75% in services revenue, PC Mall says.

NSPI’s services also cover support of desktops, network servers and voice over Internet Protocol, or VoIP, systems.

“I.T. organizations continue to seek tools and technologies to increase the value and performance they drive into their end-user communities,” Khulusi says. “We believe the acquisition of NSPI will better position us to help those I.T. teams optimize their own environments, which in turn will help us grow our own services business.”


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