Inacom sale appears imminent
- By Natasha Haubold
- Feb 28, 2000
It appeared Monday that Micron Electronics Inc. would purchase government
reseller Inacom Government Systems Inc., concluding months of negotiations.
Sources close to the negotiations confirmed the two companies were discussing
a purchase agreement but would not elaborate on the specifics. The deal
is supposed to be finalized later this week.
Companies including GTSI and Intelligent Decisions Inc. were also interested
in purchasing the company.
With less than 2 percent of its annual revenue coming from its federal
division, Inacom Corp. decided in December it was not in the company's best
interest to stay in the federal market. The approach of several federal
resellers to purchase the $140 million subsidiary finalized the corporation's
The purchase of Inacom will allow Micron to increase its customization
and systems integration capabilities. It will also allow the company to
be more competitive in the federal market.
On Feb. 16, Inacom completed the sale of its customization and logistics
division to Compaq Computer Corp. Through this deal, worth $370 million,
Compaq took control of Inacom's PC distribution and formed a new subsidiary
called Custom Edge. Compaq allowed the more than 2,500 Inacom employees
affected by the sale to retain their jobs.
The sale of the two Inacom divisions is not expected to affect government
contracts or services.