• mindSHIFT, with revenues in the $100M range after eight roll-up acquisitions, will be operated as a subsidiary of Best Buy, relying on the lead generation Best Buy can provide as a one stop shop for small and medium businesses (SMB).
• The acquisition will allow Best Buy to further grow its IT services to SMB via its retail stores, Geek Squad services, and Best Buy for Business operations. However, the challenge will be to convey the message to SMB customers that the consumer products company now offers higher end value-added IT services.
• Best Buy's traditional product resale business model has been challenged by low cost retailers such as Walmart and online retailers such as Amazon.com. As a result, it is responding by embracing services as the key to its new model, where those competitors are weak.
• BBY closed down 3.11% today, whereas the Nasdaq closed up 0.34%. This indicates that shareholders acknowledge that their core business is facing challenges.
• The acquisition is yet another deal in the MSP and cloud space where IT services companies have been entering the market (i.e: TWC, TDS, CenturyLink, Verizon).
• Staples made a similar IT services play in 2006 with the acquisition of Thrive Networks. Thrive has been run as a subsidiary and has not been significantly consolidated into Staples' retail business model.
• Martin Wolf expects continued consolidation in the managed services and cloud space as competitors try to build scale.

About Martin Wolf  

Based in Silicon Valley, Martin Wolf is a leading middle market M&A Advisory focused on companies with services-based business models. Since 1997, our team has completed more than 100 transactions in six countries. We are a five-year member of the Merrill Lynch PS Referral Network, and were selected as ICICI Bank's (India's leading private bank) exclusive strategic partner for acquiring U.S. IT companies. Martin Wolf is member of FINRA and SIPC. For more information, visit www.martinwolf.com.

September 30, 2011

SPS, a leading Unified Communications Provider, announced that Court Square Partners has made an investment in the company. Martin Wolf advised SPS in this transaction. SPS is a premier unified communication services integrator, ranked 131 on the 2011 VAR 500 list with 2010 sales of $143 million. Court Square is a $4B+ New York-based PE Group, with more than 150 lifetime investments.  

Please click here to view the announcement. 

September 20, 2011  

Accel-KKR, a technology-focused private equity investment firm, announced that it had taken a majority stake in Infinisource. Infinisource is a leading benefits administration technology and services company. Martin Wolf advised the seller in this transaction.  

Please click here to read more.  

March 11, 2011

SS&C Technologies (NASDAQ: SSNC) announced that it had acquired Glastonbury, Connecticut-based BenefitsXML. BenefitsXML is a leading provider of enterprise software and SAAS solutions for employee benefit service providers. Martin Wolf advised the seller in this transaction.  

Please click here to read more.

MartinWolf.Com 

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Quote of the Day

"Expect the best. Prepare for the worst. Capitalize on what comes."

- Zig Ziglar       

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