UPDATE 1-Systemax in pact to buy CompUSA brand, stores

Sun Jan 6, 2008 6:13pm EST

Related Topics

(Adds background)

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)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.