Dallas-based CompuCom finalizes acquisition of rival's operations
11:08 PM CDT on Wednesday, August 20, 2008
By VICTOR GODINEZ / The Dallas Morning News
Consolidation continues in the information technology services business.
Dallas-based IT outsourcing company CompuCom Systems Inc. is announcing today that it has finalized its purchase of the North American operations of competitor Getronics, based in the Netherlands.
While terms of the deal were not released, CompuCom said the combined companies would have had about $2.1 billion in revenue and about 11,000 employees last year.
That revenue number is close to the $2.6 billion reported last year by Plano-based Perot Systems Corp., another technology outsourcing company.
Perot does have about twice as many employees, though.
Dane Anderson, a McKinney-based research vice president with Gartner Inc., said the CompuCom deal is part of the consolidation trend that has been most visible locally with the purchase of Electronic Data Systems Corp. by Hewlett-Packard Co.
"It's a very crowded, competitive landscape, and providers are looking to increase their areas of coverage as well as their capabilities," Mr. Anderson said. "I think this acquisition specifically helps CompuCom with a little of both."
Although the purchase won't make CompuCom nearly as big as EDS, IBM or other so-called Tier 1 providers, it will allow CompuCom to offer many of the same services as those bigger companies.
"The combined CompuCom really is a clear and viable alternative to those firms that are asking questions or engaging with or prospecting with the Tier 1 outsourcers," said John McKenna, the company's chief strategy and service officer.
CompuCom will eliminate some overlapping costs at Getronics, whose U.S. headquarters are in Boston, but the cuts probably won't have much impact in the Dallas area.
CompuCom, owned by private equity firm Court Square Capital Partners, has about 1,100 employees in the Dallas-Fort Worth area, and that number will probably stay steady after the dust settles, Mr. McKenna said.
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