Office Depot Announces Sale of CompuCom

Office Depot Announces Sale of CompuCom

By Luke Bellos

According to a recent report by CRN, office supply retail company Office Depot has finally completed the sale of its subsidiary managed services company, CompuCom Systems.

CompuCom was sold to an affiliate of Los Angeles-based equity firm, Variant Equity Advisors in a deal worth roughly $305 million. As part of this agreement, Variant will purchase the company with a mixture of cash, an interest-bearing promissory note, as well as a contingent future earn out.

Considering the rising popularity of digital transformations as a result of shifting work conditions, this deal could be an extremely wise investment for capitalizing on the growing need for managed services.

“We are excited to combine Variant’s financial acumen and operations and technology resources with CompuCom’s capability to deliver single-source end-to-end technology solutions,” commented CompuCom President Mick Slattery in a official statement “Our shared vision for reimagining the future of work makes me truly excited about what is ahead for CompuCom and our customers. We are in an even stronger position to deliver the best user experience for our customers and to continue to earn the right to serve them every day.”

Office Depot agreed to sell CompuCom for significantly less than its original purchase price back in 2017($1 billion), but executives with the company feel the acquisition will play an important part for Office Depot’s transition to a dual company setup. In May of 2021, Office Depot revealed plans to divide its retail business with its B2B services, in order to diversify and maximize the potential of the company’s revenue opportunities.

This deal may also make Office Depot even more attractive to potential buyer Staples, which offered to purchase the company back in January. Although Staples was eager to make a deal back then, executives believed Office Depot would be more valuable if it divested from ComCom systems entirely.

Edited by Maurice Nagle
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Editor, MSPToday

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