Insight Enterprises buys Comark Inc.
Insight Enterprises Inc. announced it has acquired Comark Inc., a value-added reseller with annual revenue of about $1.5 billion. Insight acquired privately owned Comark for $150 million ? $100 million in cash and 2.3 million shares of Insight Enterprises' stock worth about $50 million.
Insight Enterprises Inc. of Tempe, Ariz., announced April 25 that it has acquired Comark Inc., a value-added reseller with annual revenue of about $1.5 billion.
Insight acquired privately owned Comark for $150 million ? $100 million in cash and 2.3 million shares of Insight Enterprises' stock worth about $50 million.
The acquisition increases Insight's public-sector presence, according to a company statement. Insight Enterprises is a holding company with two operating units, Insight Direct Worldwide Inc. and Direct Alliance Corp. Insight Direct is a global direct marketer of computers, hardware and software. Direct Alliance is a business process outsourcing organization providing direct marketing, direct sales, finance and logistics solutions.
Comark of Bloomingdale, Ill., supplies computers, peripherals, networking products, storage products, software and accessories. Comark also offers life-cycle management solutions and professional services, network design and consulting, network monitoring, system integration, hardware maintenance and voice video and data integration. Its customers include educational institutions; federal, state and local government agencies; small businesses and corporate resellers.
The combined organization will be able to offer comprehensive and cost-effective integrated products and service solutions across all business and public-sector segments, according to a company statement.
With the addition of Comark, Insight will be able to leverage its capabilities to deliver custom IT solutions, including complex systems integration and project management, and increase its sales in the public sector, particularly the federal government, company officials said.
"The combined enterprise is better equipped to respond to changing market dynamics and well-positioned to remain a leading provider of IT products and services to businesses around the globe," said Timothy Crown, chief executive officer of Insight Enterprises.
Comark had earnings before income taxes of approximately $41 million for the fiscal year ended Dec. 31, 2001. The book value of Comark at closing was about $85.5 million.
The acquisition is expected to be accretive to Insight Enterprises' earnings per share in its fiscal 2002, the statement said.