Office Depot Sells CompuCon Subsidiary in $305M Deal
Office Depot executed on a long-expected plan to sell its CompuCom Systems subsidiary in a deal worth up to $305 million, and in the process made itself a more attractive acquisition target for rival Staples. On Friday, Office Depot unveiled the sale of CompuCom Systems integration business to an affiliate of Variant Equity Advisors, a Los Angeles based equity firm specializing in corporate divestitures. The $305 million purchase price for CompuCom represents a significant discount compared to the $1 billion that Office Depot paid in 2017 when it acquired the company.
Total Retail's Take: Following several past failed merger attempts with Staples, Office Depot is taking steps to transform its business in perhaps another attempt to make it a more valuable acquisition target. In the process, Office Depot has made clear its plan to become a leaner organization focused first on being a B-to-B solutions provider, with its consumer business increasingly moving online in a complementary role. The B-to-C business is the potential target of Staples, helping to bolster its core strength in that area. It wouldn't be surprising to see these merger talks heat up in the early months of 2022.