The sale of CompuCom Systems follows ODP’s decision in May 2021 to split into two standalone, publicly-traded entities
Variant Equity acquires CompuCom Systems from ODP. (Credit: Tumisu from Pixabay)
US-based ODP has divested its subsidiary CompuCom Systems, a managed workplace services provider, to an affiliate of private equity firm Variant Equity in a deal worth up to $305m.
The consideration consists partly of cash, an interest-bearing promissory note, and a contingent earn-out in the future.
Based in the US, CompuCom Systems offers end-to-end technology and consulting to enable enterprise-level businesses to create digital workplaces. Founded in 2010, the company was acquired in 2017 by ODP, a provider of business services, products, and digital workplace technology solutions.
ODP’s acquisition of CompuCom Systems is said to have been its initial step in transforming from a conventional provider of mainly office products into a larger product and business services platform.
The sale of CompuCom Systems follows ODP’s decision in May 2021 to separate into two independent, publicly-traded companies.
ODP chief financial officer Anthony Scaglione said: “This action represents an important step in continuing to align our business model and resources towards our core strategy.
“By enhancing our core focus and leveraging our B2B assets and digital commerce platform, we are in an excellent position to maximise returns for our shareholders.”
CompuCom Systems caters to firms that have a distributed workforce with employees across remote locations, some or all of the time.
The company provides hardware, software, devices, security, and support to help employees streamline their performance and organisations meet their objectives.
In August 2021, the company became a Certified Microsoft Authorised Service Provider, which allows it to offer digital workplace support for Microsoft’s line of enterprise-ready Surface devices.
Variant Equity managing partner Farhaad Wadia said: “CompuCom has a long history of providing excellent technology support and services for its large blue-chip customer base.
“We are thrilled by this opportunity to partner with the CompuCom team and build on the company’s rich history of innovation.”
Goldman Sachs served as an exclusive financial advisor to ODP on the transaction, while Simpson Thacher & Bartlett was the counsel.