![]() ![]() Additionally, Canada expands our total market opportunity and helps us meet the needs of international customers. “The acquisition of Pivot represents an opportunity to increase our scale, geographic footprint and capabilities in US. However, Norris, in a prepared statement, said that the company is pleased with its progress in the U.S., including its 2018 acquisition of FusionStorm. Wolf also wrote that Computacenter CEO Mike Norris, who has been chief executive for more than 20 years, is “widely considered a leader in integrating companies and eliminating redundancies.”Īfter the acquisition closes, both Pivot President and CEO Kevin Shank and Pivot Chief Financial Officer David Toews are expected to play key roles in the combined Computacenter business.Ĭomputacenter did not respond to a CRN request for more information by press time. “Computacenter today is one of the largest solution providers in the world and one of the fasted growers in the last three years, due to a combination of strong organic growth and smart acquisitions such as this one and that of San Francisco-based FusionStorm,” wrote Martin Wolf, founder and president of president of martinwolf M&A Advisors, in the report. Scottsdale, Ariz.-based martinwolf M&A Advisors, one of the IT industry‘s top channel investment advisors, wrote in a Wednesday analysis that the acquisition price of Pivot represents a 40.5 percent premium to Pivot’s closing share price on Tuesday, as well as a 36 percent premium to Pivot’s 20-day volume weighted average share price. However, a push by the company to cut its administration costs in the first half of the year that was accelerated by the COVID-19 coronavirus pandemic helped the company increase its adjusted operating profit for the first six months of the year by CA$4.3 million compared to a poor comparative period in 2019. ![]() Prior to the acquisition, Computacenter for its second fiscal quarter of 2020, which ended June 30, experienced flat revenue year-over-year growth thanks to a big reduction in its higher-margin mid-market customer base. services business thanks to Pivot‘s $80 million annual revenue service business. Computacenter is also looking for a boost in its U.S. operations with Pivot, a move the company said will about double its revenue and headcount in the U.S. The company also reported a net loss of CA$555,000, or U.S.$422,000, which was down significantly from last year‘s net income of CA$1.3 million, or U.S.$1.0 million.Ĭomputacenter plans integrate its current U.S. 31 reported revenue of $1.2 billion and profit before taxes of $20.7 million.įor its second fiscal quarter 2020, which ended June 30, Pivot reported revenue of CA$332.1 million, or U.S.$252.4 million, which was down 28 percent over that of its second fiscal quarter 2019. and 100 in Canada, and gets about 85 percent of its revenue from U.S.-based clients with a focus on the enterprise. However, Pivot has about 600 employees in the U.S. Pivot is a publicly-traded IT solution provider listed on the Toronto Stock Exchange. 44 on CRN‘s 2020 Solution Provider 500 list. customer base.Ĭomputacenter is listed at No. headcount by 50 percent and gave it a full range of services to offer its U.S. IT market since its late 2018 blockbuster acquisition of San Francisco-based FusionStorm, which increased Computacenter’s U.S. The deal is Computacenter‘s first significant push for an increased share of the U.S. business in a big way with its planned acquisition of Pivot Technology Solutions.Ĭomputacenter said Wednesday that it plans to acquire Toronto-based Pivot Technology Solutions in an all-cash offer of CA$2.60 per share, or a total of CA$105.8 million (about U.S.$80.4 million), using Wednesday‘s exchange rate. Computacenter, the London-based IT solution provider giant, is looking to expand its U.S.
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