Computacenter last night announced the sale of its IT disposal and recycling subsidiary, R.D. Trading (RDC), to Arrow Electronics for £56m.
Founded in 1991, RDC was bought up by Computacenter just before the turn of the millennium. RDC, which provides IT disposal and asset recovery services, generated revenues of £41.9m in the year ending December 2013 - just 1.36% of Computacenter’s total revenue for the year. The deal will contribute to a healthy return to shareholders, CEO Mike Norris revealed.
"We are very pleased to confirm the return of £100 million to our shareholders. The cash proceeds of the disposal of RDC, together with the cash generative nature of Computacenter's business, has resulted in a net cash balance in excess of our current needs,” Norris said in a statement.
Arrow has made several similar acquisitions, buying up both Global Link Technology and Asset Recovery Corporation in 2012.
“This acquisition further broadens Arrow’s value recovery business in Europe,” said Michael J. Long, chairman, president and CEO of Arrow. “RDC will allow us to better address the growing requirements of our global customers.”