Online reseller Action has accepted an acquisition offer of £27m from US reseller Insight Enterprises. The deal, which was first mooted last month, will see Action take on the Insight brand, subject to shareholder approval.
David Palk, managing director of Action, said: "Insight has made an offer for the firm at 80p per share and the board has decided to support the offer."
He added that shareholders have three weeks to accept or decline the offer. If they accept, Insight will take control of the company towards the end of September.
The plan is to migrate to the Insight global brand once the deal is completed. "Business will continue as usual for 60 days until we have worked through a joint management plan. But the name Action will eventually be replaced if the deal is approved," said Palk.
He explained that it would be "foolhardy" to say that all jobs would be secure. However, he said the company is hoping to "offset the need for job layoffs by driving business in the SME sector".
Stan Laybourne, chief financial officer at Insight, said he felt that both companies were "compatible and it made sense to get together".
David Atherton, managing director of rival online reseller Dabs.com, said the new Action will be much "less beatable". "On the other hand, we are glad the buyer was not Dixons, which would have been a difficult competitor," he added.
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