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Insight adds muscle on both sides of the Atlantic with PCM buy
Insight has forked out a significant amount to add IT products and services player PCM to the portfolio
Insight Enterprises has splashed out $581m for IT products and services player PCM in a move that will not increase its global footprint but give more access to a number of high-profile UK customers.
PCM is an US outfit that operates across the US, Canada and the UK with more than 40 offices and 4,000 staff. The last 18 months have seen it expand aggressively with the acquisitions of Stack Group and Provista UK.
The firm sells into public sector customers in government and education in the UK, as well as SMEs and enterprises.
“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 capitalize 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,” he added.
Insight is expecting to gain "annual run-rate cost synergies of approximately $70 million," by the end of 2021, with more than half of that coming in the first 12 to 18 months as the combined operation looks to consolidate real estate, IT and delivery systems and operational integration.
Frank Khulusi, chairman and CEO of PCM, said that joining forces with Insight would give it more scale and a chance to add value for customers.
“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," he said.
The deal has already got the thumbs up from the PCM Board and is expected to close in the second half of the year after it gets the support of the acquired firm's shareholders.
