Computacenter CEO reveals why he is mulling an 'eight-figure' US acquisition
'I'd be a liar if I said we're not investigating anything', Mike Norris tells CRN
Computacenter is open to making a US acquisition to bolster its local product supply capability, CEO Mike Norris has told CRN.
The UK-headquartered reseller and services giant expanded into the US last year to bolster global support for its European clients.
Having opened its first formal US office last month, Computacenter now has 500 staff in the US and 200 in Mexico, and has just won its seventh customer there.
Computacenter has a reputation for growing organically, rather than through acquisitions, but Norris confirmed rumours that the LSE-listed firm is considering making a US purchase.
"We can build our services business here organically - we do not need to make acquisitions in the services space," he said, speaking from the New York office.
"But if we want to do product fulfilment into those customers, then we think we probably need a modest acquisition to get the accreditations quickly.
"If I'm honest, we are mulling over some things. There's absolutely nothing imminent, and we have not even spoken to any companies; it's months and months away. But I'd be a liar if I said we're not investigating anything."
Computacenter would be looking to spend "materially less than £100m", but any deal is likely to run into eight figures, Norris said.
"Our customers are predominantly on the eastern side of America - New York, Philadelphia, Charlotte, Indianapolis - so it would make sense to be on that side," he added.
"But again, it will be modest; I can't emphasise that enough. This is not a ‘we're taking on CDW scenario'; that's not my target market; that's not what I want to do. I want to have a capability to serve my European clients, and win more European clients."
Computacenter, which operates in the UK, France and Germany, only put its hand in its wallet for a UK acquisition in March, but Norris - an outspoken critic of the buy-and-build model - stressed that M&A isn't in its DNA.
"Frankly, with respect, you don't have to teach Computacenter about organic builds," he said. "We do that much more than we do acquisitions. I've been one of the least acquisitive people in the industry."