Platinum Equity Buys GE's IT Solutions

"Platinum's objective in purchasing CompuCom was to use it as a platform to grow in the technology outsourcing space, which it saw as a growing, viable business. This is their first commitment to that strategy," Jim Dixon, the newly named president and chief executive of CompuCom, tells VARBusiness. "The deal brings CompuCom to $1.7 billion in revenue. It also brings us to more than $500 million in services. GE IT Solutions has a heavier services content that CompuCom, which we do like, because they offer higher gross margins and bring us closer to the account.

Dixon adds CompuCom is not looking to get out of the product business, and that GE IT Solutions handles a higher network product set from a network environment, a good addition for the company.

"We'll have to get some different certifications, but it also allows us to service different vendors," he says. "It also gets us to VoiP."

Dixon says he expects that Platinum will make additional acquisitions this year to continue building CompuCom, but "we have to digest what we have here first. Let's make sure we put the customer first."

The acquisition of Erlanger, Ky-based GE IT Solutions reflects the industry trend toward consolidation that has been running strong this past year. The combined company will have 5,200 employees, of which 3,450 will come from CompuCom and 1,750 will come from the GE division.

"We are excited to offer this new platform to the marketplace and to have this relationship with GE," said Tom Gores, chairman and CEO of Platinum Equity in a statement.

And, according to Arthur H. Harper, president and CEO of GE Equipment Services, said in a statement: "It was important to GE to find a buyer that could ensure a strong future for its employees, and a strong commitment to service excellence."