SYNNEX Nabs PC Wholesale Division of Insight Direct

If SYNNEX is your distributor, you will soon have another option in purchasing : refurbished equipment. SYNNEX, a global IT supply chain services company, has announced that it has entered into and agreement to acquire the assets of PC Wholesale, a division of Insight Direct USA, Inc., a wholly-owned subsidiary of Insight Enterprises, Inc. PC Wholesale is an IT distributor with a specialized focus on end-of-life and refurbished equipment, a new vertical for SYNNEX.

"Through this acquisition, we will increase our customer base and provide additional services for our OEM partners, two important goals in our growth strategy," said Robert Huang, President and Chief Executive Officer of SYNNEX Corporation. "SYNNEX has a solid reputation throughout the distribution industry and its core competencies align with PC Wholesales’ business strategy," said Steve Heslop, General Manager of PC Wholesale.

"We are thankful to Insight for its support over the past several years and we look forward to working with SYNNEX to achieve our next phase of growth." SYNNEX will pay a purchase price of $10 million, plus approximately $20 million for net assets acquired, which is subject to certain post-closing adjustments. In the twelve months ended December 31, 2006, revenues from the PC Wholesale business were approximately $224 million.

SYNNEX does not expect to retain the entire revenue run rate of the PC Wholesale business after the close of the acquisition primarily due to duplications in the customer base. This acquisition follows SYNNEX’S February 20, 2007 announcement that it purchased all of the shares of Link2Support, Inc., a technical support and contact center that delivers voice, e-mail and technical chat support as well as other value-added services.