Vanstar Corp, the Pleasanton, California-based computer retail and consulting company once known as ComputerLand, has announced a major reorganization. The company will form two distinct operating units, a Professional Services Organization and Life Cycle Management Services, incorporating Product and Life Cycle Services. The units will each be responsible for their own sales, marketing and operations, but human resources, IT management, legal, financial and corporate communications will be shared between the two. The Vanstar reorg follows calls by shareholder Leon Cooperman to split the two businesses in order to maximize value. In a June 30 article, the Wall Street Journal identified the bone of contention. The stock market values the whole company as if it were just retailing PCs, when in fact the Professional Services business could probably be valued two to three times higher than that. Vanstar also announced that president and chief operating officer Jay Amato has resigned. Amato will remain with the company as a consultant for one year, advising on the establishment of the Professional Services Organization. Chairman and chief executive officer Bill Tauscher will take on the rest of his responsibilities. Amato will not be replaced.
