Systemax (NYSE:SYX)
Historical Stock Chart
From Jun 2019 to Jun 2024
![Click Here for more Systemax Charts. Click Here for more Systemax Charts.](/p.php?pid=staticchart&s=NY%5ESYX&p=8&t=15)
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.