Computacenter will pay an initial cash consideration of $70 million and as much as an additional $20 million in differed payments. ChannelE2E believes the deal’s valuation is roughly 7.4 times adjusted EBITDA. The buyer will also pay $45 million to refinance FusionStorm's existing facilities.
Computacenter stepped into the US market last year. The company says it will integrate its existing US business with FusionStorm, increasing its employee headcount in the Americas by 50 percent. The firm says it will now be able to offer a full range of services in the US consistent with its offerings in Europe, giving Computacenter a consistent approach with its international clients.
FusionStorm has six offices stateside, a subsidiary in the Netherlands, and a branch in Beijing. The firm is a top Dell EMC partner as well as a Cisco Gold partner and an HPE Gold Partner.
In a prepared statement, Computacenter CEO Mike Norris said:
“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.”
For the year ending 31 December 2017, FusionStorm reported a before tax profit of $3.9 million and a turnover of $595 million.
Computacenter has acquired multiple companies in recent years -- including ServiceNow Gold Services Partner, Team Ultra.
Additional insights from Joe Panettieri.