Big-box retailer Best Buy has entered the cloud fray with the acquisition of mindSHIFT Technologies, a managed service provider focused on the small and mid-sized businesses market.
mindSHIFT provides cloud services, data center services and professional services to more than 5,400 clients and 25,000 managed desktops in key markets throughout the United States. The transaction is valued at $167 million.
The addition of mindSHIFT’s capabilities is meant to enhance Best Buy’s retail services, Geek Squad services and Best Buy For Business operations, according to the company, which estimated the SMB managed services market at $40 billion.
In a press conference announcing the deal, Best Buy CEO Brian Dunn said the acquisition will help Best Buy expand its capabilities SMBs in industries such as legal, healthcare, financial, non-profits, associations and education.
“Our services business is a growing and profitable component of our Connected World portfolio, and a key differentiator with consumers,” Dunn said. “This transaction is an acceleration of our services business on two fronts: It gives us greater traction with SMB customers, where we already have a presence with our Best Buy for Business model. It also brings experience, talent and resources to Geek Squad and our tech support capability.”
According to Best Buy, mindSHIFT will continue to operate under its current name, management team and capabilities, which currently include 500 employees at offices in Boston; Long Island, N.Y.; Minneapolis; Morrisville, N.C.; New York City; Philadelphia and Washington, D.C.
