Systemax

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Systemax Inc.
Public[1]
Traded as NYSESYX
Industry Industrial and Technology Products[2]
Founded 1949; 68 years ago (1949)
Headquarters Port Washington, New York, U.S.
Area served
Nationwide
Key people
  • Larry Reinhold (CEO)
  • Tex Clark (CFO)
Revenue DecreaseUS$1.680 billion (2016)[3]
Divisions Industrial Products and European Technology Products Group
Subsidiaries
Website www.systemax.com

Systemax, Inc., is a Port Washington, New York based company and sells industrial and technology products through a system of branded e-Commerce websites and relationship marketers in North America and France. The primary brands are Global Industrial and Inmac Wstore.[4]

The company was founded in 1949 as Global Equipment Company, a materials handler. It first entered direct marketing in 1972 and began marketing computer equipment in 1981. It changed its name to Global Directmail in 1995 and to Systemax in 1999.

Subsidiaries and divisions[edit]

Subsidiaries and divisions of Systemax, Inc. include Global Industrial, Nexel, Infotel, C&H Distributors and Avenue Industrial Supply Company.[5][6]

Acquisition of CompUSA[edit]

On January 6, 2008, Systemax Inc. announced an agreement on the acquisition of the Miami-based CompUSA brand, trademarks, and e-commerce business, and as many as 16 CompUSA retail outlets in Florida, Texas, and Puerto Rico.[7] The first new CompUSA store under Systemax ownership was opened in November 2009.

In late December 2012, CompUSA was consolidated into TigerDirect.[8] On December 1, 2015, Systemax sold TigerDirect to PCM, Inc.[9]

Acquisition of Circuit City trademarks and website[edit]

On May 13, 2009, Circuit City announced it would sell its intellectual property, including its trademarks, brand name, and internet domain, to Systemax for $14 million.[10] The deal took effect six days later. The defunct CircuitCity.com website was restored after the Systemax purchase.

In late December 2012, Circuit City was consolidated into TigerDirect.[8] On December 1, 2015, Systemax sold TigerDirect to PCM, Inc.[9]

Acquisition of WStore Europe[edit]

On September 18, 2009 Systemax announced the acquisition of WStore Europe, SA, a European supplier of business IT products with operations in France (Inmac WStore SAS and I-Com Software) and in the United Kingdom (WStore UK Limited).[11]

Acquisition of Misco Solutions (SCC Netherlands)[edit]

On June 12, 2014, Systemax announced the acquisition of SCC Services B.V., a supplier of business-to-business IT products and services with operations in the Netherlands. This subsidiary was renamed Misco Solutions.[12]

Acquisition of Plant Equipment Group (“PEG”)[edit]

On January 30, 2015, Systemax announced the acquisition of the Plant Equipment Group ("PEG"), a business-to-business direct marketer of maintenance, repair and operations ("MRO") products, from TAKKT America . PEG serves business customers within the North American MRO market.[13]

Sale of TigerDirect[edit]

On December 1, 2015, Systemax announced the sale of certain Business to Business assets of its North American Technology Group, including TigerDirect to PCM, Inc.[14]

Sale of German Operations to CANCOM SE[edit]

On July 25, 2016, Systemax announced the sale of its Misco Germany assets to CANCOM SE.[15]

Sale of European Technology Products Group Businesses[edit]

On March 27, 2017, Systemax announced the sale of all its European Technology Products Group Businesses, excluding their operations in France. [16]

Legal disputes[edit]

On September 17, 2012, the U.S. Securities and Exchange Commission (SEC) charged a former director of Systemax Inc for fraudulently reaping hundreds of thousands of dollars in undisclosed compensation between January 2006 to December 2010. The SEC alleged that Gilbert Fiorentino, who in addition to serving on the board was the former chief executive of Systemax’s Technology Products Group in Miami, "obtained more than $400,000 in extra compensation directly from firms that conducted business with Systemax." The SEC also alleged Fiorentino of stealing "several hundred thousand dollars worth of company merchandise that was used to market Systemax’s products." Fiorentino failed to disclose his extra compensation and perks to Systemax or its auditors, so that the amounts reported to shareholders were understated.[17]

In April 2011, Systemax placed Fiorentino on administrative leave. On May 9, 2011, Fiorentino agreed to resign from all of his positions with Systemax, surrender stock and stock options valued at approximately $9.1 million, and repay his 2010 annual bonus of $480,000. With Fiorentino's departure, Robert Leeds, Systemax's founding CEO of the technology division, took over as CEO of Systemax's technology products group.[17][18]

Fiorentino agreed to settle the SEC charges by paying a $65,000 fine and consenting to a permanent bar from serving as an officer or director of any publicly held company.[17]

On December 3, 2014, Gilbert and Carl Fiorentino pleaded guilty for their participation in a bribery scheme, after it was found that between during his employment, Carl had received over $7 million in kickbacks from suppliers he had entered into agreements with Systemax, and obscured his participation in these agreements to Systemax. Gilbert was also charged with conspiracy to commit securities fraud and impeding the operation of the IRS.[19][20]

Restatement[edit]

On February 21, 2005, the company restated financial results for each of the first three quarters of 2004 and the year ended Dec. 31, 2003, following the discovery of certain inventory accounting errors at the company's British unit.[21] On May 11, 2005, the company restated its results for the year 2004, following the discovery of errors in accounting for inventory at its Tiger Direct Inc. unit, an online retailer.[22]

See also[edit]

References[edit]

  1. ^ "Archived copy". Archived from the original on February 25, 2008. Retrieved April 26, 2008. 
  2. ^ "Systemax Further Streamlines Operations To Increase Focus On Its Profitable North American Industrial Products And France IT Businesses". Retrieved 2017-03-27. 
  3. ^ "Systemax Reports Fourth Quarter 2016 Financial Results". Retrieved 2016-02-28. 
  4. ^ "Systemax to Present at Drexel Hamilton's Emerging Growth Conference". Retrieved 2016-12-11. 
  5. ^ "Archived copy". Archived from the original on May 16, 2008. Retrieved April 26, 2008. 
  6. ^ "Systemax, Inc. - Annual Report". syx.client.shareholder.com. Retrieved 2016-12-11. 
  7. ^ "Systemax Announces Definitive Agreement to Acquire Selected Assets and Retail Stores from CompUSA". Systemax. 6 January 2008. Retrieved 16 December 2009. 
  8. ^ a b "Archived copy". Archived from the original on November 5, 2013. Retrieved November 5, 2013. 
  9. ^ a b "Systemax Closes on Transaction to Divest Certain Assets of North American Technology Group to PCM". Retrieved 2016-12-11. 
  10. ^ "Systemax Inc. Signs Stalking Horse Purchase Agreement for Circuit City E-Commerce Business (NYSE:SYX)". Syx.client.shareholder.com. 2009-04-13. Retrieved 2016-04-28. 
  11. ^ "Systemax Completes Acquisition of European Business IT Supplier". Retrieved 2016-12-11. 
  12. ^ "Systemax Completes Acquisition of Business-to-Business IT Supplier SCC Services B.V.". Retrieved 2016-12-11. 
  13. ^ "Systemax's Global Industrial Business Completes Acquisition of North American Business-to-Business MRO Supplier". Retrieved 2016-12-11. 
  14. ^ "Systemax Closes on Transaction to Divest Certain Assets of North American Technology Group to PCM". Retrieved 2016-12-20. 
  15. ^ "Systemax Announces Sale Of German Operations To CANCOM SE". Retrieved 2016-12-20. 
  16. ^ "Systemax announced the sale of all its European Technology Products Group Businesses, excluding their operations in France". Retrieved 2017-03-27. 
  17. ^ a b c "SEC Charges Former Systemax Director in Compensation Scheme". U.S. Securities and Exchange Commission. Retrieved 2013-07-22. 
  18. ^ "Systemax exec resigns, must hand over $11 million". CNET. Retrieved 2013-07-22. 
  19. ^ "Former TigerDirect President Indicted in $230 Million Laundering Scheme". The Wall Street Journal. Retrieved 29 December 2015. 
  20. ^ "Former TigerDirect executives plead guilty to fraud". South Florida Business Journal. Retrieved 29 December 2015. 
  21. ^ Joseph F. Kovar. "Systemax To Restate Earnings - Page: 1". CRN.com. Retrieved 2016-04-28. 
  22. ^ "Systemax Announces Intent to Restate 2004 Results". Businesswire.com. Retrieved 2016-04-28. 

External links[edit]