CDW Corp. — a provider of technology products and services for businesses, government and education — has entered into an agreement to buy many of the North American assets of
Micro Warehouse, a reseller of computers, software and peripheral products. One branch of Micro Warehouse is Macwarehouse, an online reseller of Macs and Mac-related products.
Both companies’ board of directors have approved the transaction, which should be completed today in the U.S. (completion of the Canadian portion of the transaction is subject to certain regulatory approvals). The purchase price for the assets being acquired, including inventory, is approximately US$22 million. CDW won’t buy either the accounts receivable or the liabilities of Micro Warehouse, but will receive compensation for collecting existing Micro Warehouse receivables for a service fee of 5 percent.
For its money CDW gets Micro Warehouse’s U.S. customer base (which accounted for annualized August sales of more than $900 million), the Canadian operation (with 12-month sales of approximately $40 million), existing inventories valued at approximately $14 million, and intellectual capital, including trademarks and copyrights. CDW says it anticipates integrating Micro Warehouse assets and employees into its organization by the end of the year.
“Micro Warehouse is indeed now part of the CDW family and shortly will adopt the CDW name,” John Edwardson, CDW chairman and CEO writes in
an online letter.