Misco to 'increase focus on UK turnaround' after selling German arm
CANCOM SE buys loss-making unit
Misco UK has claimed the sale of its German counterpart will help aid its turnaround efforts in this country and its growth ambitions across Europe.
Parent company Systemax announced today that Misco Germany had been sold to CANCOM SE for an undisclosed sum. The deal, which is expected to close next month, covers all of the business' staff and customer contracts.
In a statement from a spokesperson at Misco UK, the reseller stressed that the German sell-off has no wider implications for the company's other operations across the EMEA region. The statement explained that the deal will, in fact, help Misco in make good on its turnaround plan for the UK, as well as its growth ambitions in the rest of Europe.
"The announcement today relates solely to our German operations and there are no implications in that for our other EMEA markets," said the spokesperson. "The sale will allow our senior leadership team to increase its focus on our UK turnaround plan and growth efforts in our other markets. We proactively manage all of our businesses and will continue to make investments to optimally position our operations and improve our long-term financial performance."
Systemax's EMEA operations - primarily consisting of the Misco and Inmac Wstore brands - have been something of a drag on the company's financials in recent years. In 2015 Systemax saw EMEA turnover decline 11.5 per cent annually to $1.05bn (£800m), while operating losses in the region stretched to $9m. Earlier in the year the firm indicated that the German business had running at a loss for some time, and admitted that it was "considering all options for improving this business".
Having offloaded its German unit, the US-headquartered titan retains European sales operations in the Netherlands, Belgium, the UK, France, Spain, Italy, Austria, Switzerland, Sweden, and Ireland. It also runs a shared service centre supporting operations across EMEA from Budapest
Systemax CEO Larry Reinhold said: "With the sale of our German business to CANCOM SE we have found a terrific home for all of our German employees and customers. Germany has been our most challenged market for a number of years and this transaction will have a positive impact on the future overall financial performance of our EMEA and consolidated operations."
Munich-based integrator and cloud provider Cancom has been in business for 24 years, and employs 2,800 people across around 25 locations in Germany, Austria, and Belgium. In 2015 the company saw EBITDA increase 22.3 per cent to €63.1m on sales which rose 12.5 per cent to €932.8m (£780.1m).