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Channel News: Synnex Buys PC Wholesale

Synnex Corp., a global IT supply chain services company and one of Microsoft's handful of authorized distributors in the United States, snapped up PC Wholesale in March, adding end-of-life and refurbished equipment to its existing vertical lineup.

Synnex acquired the assets of PC Wholesale from direct market reseller Insight Enterprises Inc., which had run PC Wholesale as a division of its wholly-owned subsidiary, Insight Direct USA Inc. Synnex agreed to pay $10 million for the business plus about $20 million for net assets.

While PC Wholesale's revenues in calendar year 2006 came to about $224 million, Synnex expects the acquisition will add less than that to its top line due to duplication in the customer base. Fremont, Calif.-based Synnex reported $6.34 billion in revenues for its fiscal year that ended Nov. 30, 2006.

"Through this acquisition, we will increase our customer base and provide additional services for our OEM partners, two important goals in our growth strategy," Robert Huang, president and CEO of Synnex, said in a statement.

Synnex also posted a new homepage for the PC Wholesale site, encouraging the company's customers to become Synnex partners and to continue to work with their PC Wholesale representatives.

About the Author

Scott Bekker is editor in chief of Redmond Channel Partner magazine.

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