Ricoh, the Japanese-based company manufacturer of office equipment, has announced it is acquiring mindSHIFT from Best Buy Company, Inc., the retailer with locations in Virginia and throughout the United States. Ricoh has stated that it will use the capabilities of the acquired cloud and managed services business to expand its service capabilities. While the terms of the acquisition were not disclosed, Best Buy had purchased mindSHIFT for $167 million in a transaction that closed in January 2012.
MindSHIFT will keep its name and continue operations with its present management team, employees and locations. According to a press release, mindSHIFT has grown from having 5,400 clients when it was acquired by Best Buy to 6,900 clients today. The Ricoh acquisition is set to close in February after which mindSHIFT will become a Ricoh subsidiary. Ricoh has indicated that it will look at making other acquisitions in the future to be able to offer additional capabilities to its customers.
After being acquired by Best Buy two years ago, mindSHIFT has been recognized as a leading company in the cloud and managed services business, with one survey listing it in its top 100 list of cloud services providers. However, there has been speculation in the past that Best Buy might be interested in selling mindSHIFT.
When companies want to increase their market share, they often seek to expand into new markets through strategic acquisitions. An attorney with a background in business and commercial law may be able to assist in the negotiation and preparation of the often-complex documents that are required in such a transaction.
Source: MSPmentor, "Best Buy Sells mindSHIFT MSP Business to Ricoh", CJ Arlotta , January 21, 2014