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PCM Buys Systemax's TigerDirect

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PCM (formerly PC Mall) acquires TigerDirect and a number of B2B assets of the Systemax North American Technology Group (NATG), in a deal worth $14 million.

Tiger DirectThe sale brings the Systemax retail adventure to an end--or, as Systemax CEO Richard Leeds puts it, "[the sale] will allow us to devote all of our time and resources on our other businesses and improving their competitive position to capitalise on their growth opportunities."

Other Systemax divisions include the European B2B unit, an industrial products group and education- and government-channel operations. After the sale Systemax will close its 3 remaining retail stores and the NATG distribution centre.

Through the deal PCM gets 400 B2B sales representatives located across the US and Canada, all rights to the NATG B2B customer list and "certain" B2B customer and vendor contracts.

"[W]e expect the acquisition to contribute nicely to our revenue and to be meaningfully accretive to our 2016 bottom line operating results beginning in Q2," the company says says. "We should be able to give more colour on these wonderful prospects as we integrate this acquisition."

Founded in 1987 by Carl and Gilbert Fiorentino, TigerDirect was bought by Systemax in 1996. The brothers continued running the operation post-sale, expanding it into a 40-store chain stretching from Florida to Canada-- but expansion plans through the acquisition of CompUSA and CircuitCity.com in bankruptcy sales failed, and later the founders pleaded guilty to federal charges for accepting millions in vendor bribes and kickbacks.

Go PCM Announces Acquisition of Certain B2B Assets of Systemax's North American Technology Group including the TigerDirect Brand