Insight Enterprises has acquired PCM in a blockbuster channel deal amounting to $581 million, as the one-time reseller pivots towards global solutions.
Terms of the agreement will see the creation of a $9 billion technology giant, backed by more than 7500 customer-facing employees worldwide.
Headquartered in California, PCM is a provider of multi-vendor technology offerings, spanning hardware, software and services to small, mid-sized and corporate and enterprise commercial customers.
The business also has strong presence within state, local and federal governments and educational institutions across the US, Canada and the UK. Across these locations, PCM houses more than 4000 employees, 2700 of which customer-facing in sales, technical and service delivery roles.
“Over the past five years, Insight has made significant progress, transforming our business from a value-added reseller to a well-respected global solutions provider with deep expertise across technology areas that provide our clients with significant value,” said Ken Lamneck, CEO of Insight.
“Together with PCM, we will be even better positioned to capitalise on our solution area investments through the addition of more technical and sales resources and access to thousands of new clients, especially in the mid-market and corporate client segments.”
While the transaction will primarily benefit North America and Europe, the acquisition stands to impact the business on a global scale through a unified workforce.
“The acquisition of PCM accelerates our opportunity to grow share within our four solution areas: supply chain optimisation, connected workforce, cloud and data centre transformation and digital innovation,” added Steve Dodenhoff, president of North America at Insight.
According to Dodenhoff, the combined entity helps extend Insight’s reach into the key areas of helping customers shape transformation and security strategies, in addition to creating modern and mobile experiences for the workforce.
“This combination offers the ability to provide clients with greater value through the expansive solution offerings of the combined company at a time when customers increasingly need a full-service technology solutions provider to help them transform for the future,” said Frank Khulusi, chairman and CEO of PCM. “Together, we will be able to offer an impressive level of breadth, scale, partnerships and services to meet our clients’ needs and exceed their expectations.
“On behalf of our board of directors, we are very pleased to announce this combination which we believe maximises our shareholders’ value, and we look forward to the resulting opportunities that lie ahead for our employees, customers and vendor partners.”
Insight expects to realise annual run-rate cost synergies of approximately $70 million by the end of 2021, with more than 50 per cent of this to be realised in the first twelve to eighteen months, primarily related to the consolidation of IT and delivery systems, and real estate and operational integration.
“Insight has a disciplined operating model for evaluating acquisitions and efficiently integrating these businesses post-closing, which has allowed us to deliver well on the financial commitments of acquisitions we have made in the past few years,” said Glynis Bryan, CFO of Insight.
“As we move towards the closing and integration of PCM, we expect to deploy these same best practices to deliver the expected synergies in our financial results. We believe this transaction will contribute materially to shareholder value as we execute our plans.”