somchaij - Fotolia
Computacenter has made no secret of its ambition to expand its footprint through acquisition and has pitched the flag on the West side of the US with a deal to buy San Francisco firm FusionStorm.Content Continues Below
The US player has built up a strong reputation over the last 23 years in the professional services arena and will complement Computacenter's plans to increase its managed services revenues.
The deal cost $70m and there could be a further $20m depending on profit levels and Mike Keogh, US CEO of Computacenter will be overseeing the latest addition.
Last year FusionStorm reported pre-tax profits of $3.9m on a turover of $595.5m with gross assets of $225m as of 30 June 2018.
Computacenter is already planning to help profits improve by restructuring FusionStorm's short term debt and credit arrangements to reduce interest charges that ate into the bottom line.
"This transaction broadens our capability to serve our international customers and should enhance our existing customer offer and reach into the US marketplace whilst providing an opportunity to improve the long-term prospects for the employees of FusionStorm and Computacenter US," said Mike Norris, Group chief executive at Computacenter.
In response Dan Serpico, CEO of FusionStorm, said that a tie-up with a firm that had operations across Europe would give it a chance to become part of something more international.
"Computacenter, as one of the leaders in our marketplace, offers an exciting opportunity for our employees as well as security, range of services and international coverage for our clients and partners. Out of many potential suitors, Computacenter stood out for their great cultural fit and I am very proud that we can start the next step in our company's journey as part of this great business," he said.