UPDATE 1-Systemax in pact to buy CompUSA brand, stores
NEW YORK Jan 6 (Reuters) - Systemax Inc (SYX.N) on Sunday said it reached an agreement with CompUSA Inc to buy its brand, trademarks, e-commerce business and as many as 16 retail stores from the gadgets and electronics retailer.
Systemax said the deal's total cost -- which it expects to be about $30 million -- depend on which retail locations it takes over.
"We believe the value of the CompUSA brand remains very high," Systemax Chief Executive Richard Leeds said in a statement. "We view this acquisition as a strong complementary business to our TigerDirect operation."
Sources told Reuters last month that CompUSA's stores would either be closed or sold off following the holiday shopping season.
The retailer -- once controlled by Mexican billionare Carlos Slim -- was sold last month to Gordon Brothers Group, a restructuring and investment firm.
Consolidation in the electronic retailing sector has resulted in intense competition as large companies like Best Buy Co Inc (BBY.N) and Wal-Mart Stores Inc (WMT.N) undercut smaller rivals such as CompUSA and Circuit City Stores Inc CC.N. (Reporting by Justin Grant, editing by Martin Golan)
- Exclusive: Angry with Washington, 1 in 4 Americans open to secession
- Secret Service investigates after man jumps White House fence, reaches doors
- About 60,000 Syrian Kurds flee to Turkey from Islamic State advance |
- U.S. immigration protesters drop U.S. border blockade plan
- California governor rejects bills to help men change diapers