January 6, 2008 / 11:16 PM / 12 years ago

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

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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)

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