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GLOBAL DIRECTMAIL EXPANDS INTO PC SALES WITH INFOTEL BUY

Global DirectMail Corp, a $1bn office and industrial direct mail products distribution company with ambitions to grow its personal computers business, has a definitive agreement to acquire Infotel Inc for $48.3m. As a result, the company says it will take a $6m charge in its third quarter ending September 30. The acquisition will be paid for with $40m cash and $8.3m in Global common stock. Infotel is a Fletcher, Ohio-based direct mail computer products marketer and reseller, known for its MidWest Micro brand catalogue. It had revenues last year of $235m. Infotel has the capacity to process up to $1bn in build-to-order PCs, according to Port Washington, New York-based Global, which plans an increase in Infotel’s capacity and a reduction in costs. Global, which operates in North America and Europe, also wants to build up the business it carries out through value-added resellers, which accounts for around half of Infotel’s sales.

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CBR Staff Writer

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