Big day at Best But as they buy out the stake in Carphone UK and pick up an MSP.< br/>
Bloomberg reports, "Best Buy Co., the world's largest consumer-electronics retailer, agreed to buy Carphone Warehouse Group Plc (CPW)'s stake in their U.S. mobile-phone joint venture for 838 million pounds ($1.34 billion) and close the U.K. stores it opened less than two years ago."
So Best Buy goes deeper into mobile retailing (well, not sharing profits on its Best Buy Mobile stores).
Today, Best Buy also decided to buy an MSP, mindSHIFT Technologies, Inc., for $167 million.
The press release stated, "The transaction will help accelerate Best Buy's growth in the small and mid-sized business IT services category. mindSHIFT provides cloud services, data center services and professional services to more than 5,400 clients and 25,000 managed desktops in key markets throughout the United States."< br/>
Rodrego A. Byerly tweeted, "mindShift deal makes strategic sense -Best Buy possesses very significant distribution capabilities to deliver managed services to small biz." Best Buy management thinks that their future is as some kind of MSP, which may or may not be true. And buying one that focuses on small biz (it has less than 5 desktops per customer????) is a start, but can it work? Will businesses look to Best Buy as their technology partner? Not sure, since most experiences I hear about say that the Best Buy herd is unskilled. They are no Chuck Bartowski!
More from the MSP / VAR space: "Presidio will acquire all of the outstanding common stock of INX. The proposed transaction will create one of the largest national advanced IT solution providers. The post transaction company, which will carry the Presidio name, will employ over 1,800 IT professionals operating out of 45+ offices across the United States and will offer clients unparalleled access to world-class consulting, engineering & technical resources."
This represents a big day for the VAR/MSP space. We will be seeing more and more of acquisitions in the VAR and MSP space through 2012, it's just too hot of a space. Telcos, cablecos and other VAR's are looking to grow - revenue, skills, talent and technology (like data centers and NOC's). It's far easier to buy than to build.
Telecom equipment provider Tekelec agreed to be taken private for $11 a share in cash, or about $780 million, by a group led by Siris Capital. Other participants in the deal include ComVest Group, GSO Capital Partners, Sankaty Advisors and ZelnickMedia.
In VZ news, FairPoint trust sues Verizon for $2B for fraud in its sale of New England landline business to Fairpoint in 2008. The $2.3B deal is allegedly the reason that Fairpoint went BK. Not for nothing, but I and other analysts wrote about how this deal would be a disaster. Apparently, we were right and Fairpoint didn't do proper due diligence. Where's the lawsuit against the Fairpoint Board of Directors for failure of their fiduciary responsibility?
According to Business Insider, "Urban Airship which helps companies add features like push notifications and in-app purchases to their mobile apps on multiple mobile platforms, has raised a $15 million Series C round with strategic investments from Verizon and Salesforce."