Office Depot Takes First Step in Strategic Transformation to Become Business Services Platform with Acquisition of CompuCom

Office Depot, Inc. (“Office Depot” or the “company”) (NASDAQ:ODP) today announced it is pivoting the company from a traditional office products retailer to a broader business services and technology products platform. As the first step in this new strategic direction, the company has entered into a definitive agreement to acquire CompuCom Systems, Inc. (“CompuCom”), a market-leading provider of award-winning IT services, products and solutions that enable the digital workplace for enterprise, small and midsize businesses. The company also provided a preliminary estimate of third-quarter financial results and a lowered outlook for Office Depot’s stand-alone business for 2017.

“Technology is the office supply of the future,” said Gerry Smith, chief executive officer of Office Depot. “Today marks a significant milestone as we move to provide a unique business services platform for our current and future customers. Acquiring CompuCom is the first step in this new strategic direction. The combination of CompuCom’s enterprise IT services with our millions of customers and approximately 1,400 distribution points gives us the credibility and scale to build a sustainable platform and stand apart from the competition. The company will create value for shareholders from a diversified revenue base with a clear opportunity to grow higher value services and business-to-business revenues.”

Under the terms of the agreement, Office Depot will acquire CompuCom from Thomas H. Lee Partners, L.P. (“THL”), a premier private equity firm, for a total consideration of approximately $1 billion, which includes the repayment of CompuCom debt and issuance of new Office Depot shares. Following the transaction, THL will hold an equity position in Office Depot of approximately 8% of total shares outstanding.

Founded in 1987, CompuCom provides highly-rated managed IT services to businesses with over 5.1 million unique end users. CompuCom’s team of approximately 6,000 licensed technicians is the largest employee field technician workforce in North America, providing remote and onsite technology support. CompuCom procures, installs and manages the lifecycle of hardware and software for businesses, and offers IT support services including remote help desk, data centers and on-site IT professionals. CompuCom was positioned in the Leaders quadrant of Gartner’s® most recently released Magic Quadrant® for Managed Workplace Services, North America. CompuCom has established long-term relationships with hundreds of blue chip customers, including six of the top 10 Fortune 500 companies, and many small- and medium-sized businesses, including local franchises of national brands.
more at:  http://investor.officedepot.com/phoenix.zhtml?c=94746&p=irol-newsArticle&ID=2304472

Related Posts

Savvas Introduces Newest Edition of its Award-Winning myPerspectives Program With Powerful Interactive Resources for Teachers and Students

Savvas Learning Company announced the newest edition of its award-winning, standards-aligned myPerspectives English Language Arts (ELA) program, enhanced with powerful interactive resources that provide students with exciting multimedia content and give teachers valuable tools to monitor students’ progress in real-time. Building on its highly successful, evidence-based approach that improves student outcomes, myPerspectives © 2025 for grades 6-12 offers greater opportunities for student engagement, increased options for differentiated teaching, and more reading and writing support to help every student achieve their potential.

Penguin to buy Simon & Schuster (sungazette.com)

German media giant Bertelsmann said Wednesday that its Penguin Random House division is buying rival Simon & Schuster in a megadeal that would reshape the U.S. publishing industry. Penguin Random House, already the largest American publisher, will buy the New York-based Simon & Schuster, whose authors include Stephen King, Hillary Clinton and John Irving, from TV and film company ViacomCBS for $2.17 billion in cash. “Simon & Schuster strengthens Bertelsmann’s footprint globally, and (particularly) in the U.S., its second-largest market,” the Guetersloh, Germany-based company said in a statement. The purchase of Simon & Schuster would reduce the so-called Big Five of American publishing — which also includes HarperCollins, Hachette Book Group and Macmillan — to four.

Xerox and World-Renowned Authors Set the Page Free in Collaborative Book Project

A book collaboration of epic scale is underway with 14 celebrated and award-winning international writers and creative talents. Xerox’s Project: SET THE PAGE FREE will feature chapters by each of the contributors – including a poem and a song – that together tell the ultimate story of the modern workplace, each with a unique creative perspective on the working world.
Back To Top
×Close search
Search