Best Buy Bolsters Cloud Services With White Glove Acquisition
Best Buy (NYSE:BBY) recently acquired White Glove Technologies, a Texas-based managed IT services provider (MSP), in an effort to strengthen its presence in the cloud services industry and expand its managed IT services in Texas. The terms of the acquisition are not yet disclosed and the transaction is expected to complete by July.
The company made this acquisition through its subsidiary mindSHIFT Technologies, its outsourcing and cloud services provider. Last year Best Buy acquired mindSHIFT for $167 million to get entry into the growing MSP market for small and midsize companies, which is worth $40 billion. [1]
According to mindSHIFT’s CEO Paul Chisholm, mindSHIFT’s growth strategy is to expand through geographic expansion. [2] We believe this is a strategic acquisition for the consumer electronics retailer which is trying to establish its presence in the cloud services market. Best Buy has been going through rough times lately as it continues to fight increasing competition from online retailers like Amazon (NASDAQ:AMZN) and eBay (NASDAQ:EBAY).
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In addition, a foray into managed IT services could bring in diverse revenue and possible synergies with the Best Buy Geek Squad.
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Notes:- Best Buy Buys Into Cloud With mindSHIFT, Forbes, November 7, 2011 [↩]
- See: Best Buy’s mindSHIFT Acquires White Glove Technologies, MSPmentor [↩]