Parent company of Office Depot to offload CompuCom division for $305 million dollars
Office Depot Corp (ODP) is currently in the midst of a significant transformation, with the company announcing plans to sell its CompuCom Systems IT unit and split into two companies.
The sale of CompuCom Systems IT unit to an affiliate of Variant Equity is nearing completion, with the deal valued up to $305 million. This sale represents a significant reduction in valuation compared to ODP's original acquisition of CompuCom for $1 billion in 2017. Variant Equity, a private equity firm focusing on several industries, will be making its first managed service provider (MSP) purchase with this acquisition.
CompuCom has been under review by its parent, ODP Corp., for over a year. The sale comes as ODP Corp. moves to prune and divest, aligning its business model towards its core strategy. The sale includes a mix of cash and an interest-bearing note, among other terms.
ODP Corp. has also announced plans to split itself into two companies. One of the resulting companies will house ODP's business-to-business supply services, while the other will consist of its retail banners. The split is expected to be completed in the first half of this year.
The sale of CompuCom Systems IT unit and the planned split of ODP Corp. are important steps in the company's strategic transformation from a traditional office products retailer to a broader business services and technology products platform.
It is worth noting that rival Staples has reiterated its interest in buying ODP's retail business for $1 billion. However, the status of this potential acquisition has not been confirmed by ODP Corp. at this time.
ODP's Chief Financial Officer, Anthony Scaglione, stated that the company is in an excellent position to maximize returns for its shareholders with these actions. The sale of CompuCom Systems IT unit is expected to close in the fourth quarter of 2025, subject to customary closing conditions and regulatory approvals.
[1] Source: Office Depot Corp. press release, 2025.
- The transformation of Office Depot Corp (ODP) includes the sale of its CompuCom Systems IT unit to Variant Equity for up to $305 million, a significant reduction from its 2017 acquisition cost.
- Variant Equity, focusing on various industries, is poised to make its first managed service provider (MSP) purchase with the ODP Corp acquisition.
- ODP Corp is splitting into two companies, one housing the business-to-business supply services, and the other consisting of its retail banners, expected to be completed by the first half of 2025.
- AI, technology, finance, and business sectors will be expanded through ODP's strategic transformation from a traditional office products retailer to a broader business services and technology products platform.
- Rival Staples has expressed interest in acquiring ODP's retail business for $1 billion, although the status of this potential deal remains uncertain.
