https://www.channelfutures.com/wp-content/themes/channelfutures_child/assets/images/logo/footer-new-logo.png
  • Home
  • Technologies
    • Back
    • SDN/SD-WAN
    • Cloud
    • RMM/PSA
    • Security
    • Telephony/UC/Collaboration
    • Cable
    • Mobility & Wireless
    • Fiber/Ethernet
    • Data Centers
    • Backup & Disaster Recovery
    • IoT
    • Desktop
    • Artificial Intelligence
    • Analytics
  • Strategy
    • Back
    • Mergers and Acquisitions
    • Channel Research
    • Business Models
    • Distribution
    • Technology Solutions Brokerages
    • Sales & Marketing
    • Best Practices
    • Vertical Markets
    • Regulation & Compliance
  • MSP 501
    • Back
    • 2022 MSP 501 Rankings
    • 2022 NextGen 101 Rankings
  • Intelligence
    • Back
    • Galleries
    • Podcasts
    • From the Industry
    • Reports/Digital Issues
    • Webinars
    • White Papers
  • Channel Futures TV
  • EMEA
  • Channel Chatter
    • Back
    • People on the Move
    • New/Changing Channel Programs
    • New Products & Services
    • Industry Honors
  • Resources
    • Back
    • Advisory Boards
    • Industry Organizations
    • Our Sponsors
    • Advertise
    • 2023 Editorial Calendar
  • Awards
    • Back
    • 2022 MSP 501
    • Channel Influencers
    • Circle of Excellence
    • DE&I 101
    • Technology Advisor 101 (TA 101)
  • Events
    • Back
    • 2023 Call for Speakers
    • CP Conference & Expo
    • MSP Summit
    • Channel Partners Europe
    • Channel Partners Event Coverage
    • Webinars
    • Industry Events
  • About Us
  • DE&I
Channel Futures
  • NEWSLETTER
  • Home
  • Technologies
    • Back
    • SDN/SD-WAN
    • Cloud
    • RMM/PSA
    • Security
    • Telephony/UC/Collaboration
    • Cable
    • Mobility & Wireless
    • Fiber/Ethernet
    • Data Centers
    • Backup & Disaster Recovery
    • IoT
    • Desktop
    • Artificial Intelligence
    • Analytics
  • Strategy
    • Back
    • Mergers and Acquisitions
    • Channel Research
    • Business Models
    • Distribution
    • Technology Solutions Brokerages
    • Sales & Marketing
    • Best Practices
    • Vertical Markets
    • Regulation & Compliance
  • MSP 501
    • Back
    • 2022 MSP 501 Rankings
    • 2022 NextGen 101 Rankings
  • Intelligence
    • Back
    • Galleries
    • Podcasts
    • From the Industry
    • Reports/Digital Issues
    • Webinars
    • White Papers
  • Channel Futures TV
  • EMEA
  • Channel Chatter
    • Back
    • People on the Move
    • New/Changing Channel Programs
    • New Products & Services
    • Industry Honors
  • Resources
    • Back
    • Advisory Boards
    • Industry Organizations
    • Our Sponsors
    • Advertise
    • 2023 Editorial Calendar
  • Awards
    • Back
    • 2022 MSP 501
    • Channel Influencers
    • Circle of Excellence
    • DE&I 101
    • Technology Advisor 101 (TA 101)
  • Events
    • Back
    • 2023 Call for Speakers
    • CP Conference & Expo
    • MSP Summit
    • Channel Partners Europe
    • Channel Partners Event Coverage
    • Webinars
    • Industry Events
  • About Us
  • DE&I
    • Newsletter
  • REGISTER
  • MSPs
  • VARs / SIs
  • Agents
  • Cloud Service Providers
  • Channel Partners Events
 Channel Futures

Strategy


mindSHIFT Memo Explains Best Buy Deal to Customers

  • Written by Joe Panettieri 1
  • November 7, 2011

The mindSHIFT executive team, in an apparent email to customers, described Best Buy’s $167 million buyout of mindSHIFT, and the potential synergies from the deal. The memo confirms that mindSHIFT had been seeking “a new investor” for several months. MSPmentor has not directly confirmed the memo’s authenticity. But generally speaking, it looks like the real deal to me. Here’s the memo…

… in its entirety:

Subject: mindSHIFT Announcement

Today marks a historic day in mindSHIFT’s continuing journey to be the premier IT services provider to Small and Medium Businesses (SMBs).  Today, we are announcing that mindSHIFT and Best Buy have entered into a definitive agreement for mindSHIFT to become a wholly owned subsidiary of Best Buy.  This acquisition means that mindSHIFT will become a Best Buy company.  The transaction, which is expected to close at year-end is subject to regulatory and Board approvals.

As you know, your business as well as our legacy private investors fuel mindSHIFT’s growth.  These investments have enabled mindSHIFT to become the leader in the managed services arena for small and mid-sized business and within our key vertical areas of focus through the expansion of our product sets and our expertise in the managed services arena.  We began a process to seek out a new investor several months ago to continue our growth strategy. During our process it became clear that we were very closely aligned with Best Buy in both corporate vision as well as in our culture of integrity, customer value and results.  Throughout this process Best Buy has been emphatic about its commitment as a corporate objective to expand its SMB IT services business, and mindSHIFT will be one of the foundations of this strategy.

The Best Buy family of brands and partnerships collectively generates more than $50 billion in annual revenue.  We are all familiar with the Best Buy retail stores, but the Best Buy family includes a number of brands outside of the stores. Best Buy operates around the world as;  Audiovisions, Best Buy Mobile, Best Buy for Business, The Carphone Warehouse, Five Star, Future Shop, Geek Squad, Magnolia Audio Video, Pacific Sales, and The Phone House.  The two brands that most closely align with mindSHIFT are the Geek Squad and Best Buy for Business.  Both of these areas are an integral part of the Best Buy growth strategy to focus on Services and SMBs.

Through the investor process, we demonstrated to Best Buy that we have the most comprehensive IT services portfolio available today to SMBs and a team of employees that are second to none. Best Buy’s brand and existing Services capabilities coupled with mindSHIFT’s capabilities in the SMB space position us to be the premier player in this space and we will continue to set a new standard for the industry.

Best Buy will establish mindSHIFT as a separate subsidiary. This means that we will continue to use the mindSHIFT brand and continue with our present plan for both organic and acquisition growth.  The mindSHIFT management team will continue to lead the company and all employees will continue in their present roles. Best Buy values the unique talents, knowledge, expertise and technical skills that mindSHIFT employees possess.

In this transaction mindSHIFT has focused on what is in the best interest of our customers and our employees.  For you, our valued customer, it will be business as usual.  mindSHIFT will continue to deliver the same services through the same team.  In the future, with Best Buy we will expand our portfolio of services to deliver even more value to the Small and Medium Business market.  I believe this is the correct next step in mindSHIFT’s growth as the potential benefits of our combination are much greater than we could achieve on our own.

We recognize that this transaction and our growth are not possible without your business.  I know I speak for everyone at mindSHIFT as I thank you for your business, the continuing confidence you have in mindSHIFT and the trust you have in us to deliver premier IT Managed Services to you and all of your end users.

I, or your mindSHIFT contact is available to speak with you at any time regarding this transaction.”

Side note: I’m not sure how the memo is being signed as it reaches customer inboxes.

A Closer Look

Read between the lines and it’s clear mindSHIFT’s “legacy investors” were looking for a potential exit strategy. That strategy included hiring a financial advisory firm, The Bank Street Group, as a financial advisor on potential M&A or investor deals.

Also, it’s clear Best Buy sees potential synergies between mindSHIFT, Best Buy Geek Squad and Best Buy for Business. However, the Big Box retailer has to be careful with that strategy. mindSHIFT offers sophisticated cloud and managed services. In my opinion, the mindSHIFT brand could become tarnished if it gets lumped in with consumer break-fix services promoted by Geek Squad.

Still, it’s clear that the mindSHIFT brand and management team will march forward as a focused business, working under the larger Best Buy portfolio.

Tags: Agents Cloud Service Providers MSPs VARs/SIs MSP 501 Strategy

Most Recent


  • Global partners
    Trellix Unveils New Xtend Global Partner Program for XDR
    Xtend is both an expansion and enhancement of what's already been in place for partners.
  • Unveil
    SafeGuard Cyber Unveils New Partner Program for MSSPs
    The partner program is designed to drive profitability and predictability.
  • Story telling
    Brand Storytelling: Find Your Authentic Voice in Three Easy Steps
    First you need to find your unique and differentiated brand voice.
  • Cash, U.S. currency
    Skybox Security Hires New CEO, Nabs $50 Million in New Financing
    The new CEO said his appointment marks a new chapter for Skybox Security.

4 comments

  1. Avatar Gerson November 7, 2011 @ 4:39 pm
    Reply

    Congrats to mind shift – it certainly validates the growing MSP market. I’m still scratching my head on how they can find synergy in going from selling appliances to high level IT services – but hey…

  2. Avatar Joe Panettieri November 8, 2011 @ 12:06 pm
    Reply

    Gerson: IBM found the synergy between hardware, software and services. Perhaps Best Buy can find some synergy between consumers, SMB, technology and IT services — automated through cloud and managed services. I do see the potential synergies and opportunities. But I also see some clear challenges. I will share more thoughts later today…
    -jp

  3. Avatar Sal January 19, 2012 @ 3:51 pm
    Reply

    This merger will give small MSP to grow in near future. BestBuy will apply same customer service which they offer at GeeksSqaud.

    CompUSA tried samething, they tried to offer all services including home electronics and appliances and that become #1 cause for them to go out of business.

  4. Avatar ZulqurnainAgha January 19, 2012 @ 3:58 pm
    Reply

    Sal,

    I totally agree with you. SMB needs more personal interaction, more communication and attention that big organizaition always fails to full fill this part of requirement.

    Its not really about the bigger the better in this case.

    Rgds.
    @ZulqurnainAgha.

Leave a comment Cancel reply

-or-

Log in with your Channel Futures account

Alternatively, post a comment by completing the form below:

Your email address will not be published. Required fields are marked *

Related Content

  • Cloud computing concept
    Pax8 Lines Up New Deals with 5 Vendors
  • Conflict Boxing Gloves
    Channel Conflict, Controversy: SolarWinds Hack, Racism, Layoffs, Zoom-RingCentral
  • Paying ransomware
    Sophos: Avaddon Ransomware Becoming More Prominent, Aggressive
  • kicking down obstacles
    IBM, Microsoft ‘Helping Eliminate Obstacles’ for Developers

Upcoming Events

View all

Channel Partners Conference & Expo

May 1, 2023 - May 4, 2023

Channel Partners Europe

June 13, 2023 - June 14, 2023

Channel Futures Leadership Summit

October 30, 2023 - November 2, 2023

Galleries

View all

New, Changing Channel Programs: Aryaka, IBM, Google Cloud, RPA Provider

February 8, 2023

Trellix Unveils New Xtend Global Partner Program for XDR

February 8, 2023

Abundant IoT, Advisors Tackle the eIoT Opportunity

February 6, 2023

Industry Perspectives

View all

The Software Patching Problem – Solved

February 3, 2023

How to Break Through the Growth Ceiling

February 1, 2023

5 Things to Look for in a UC Partner

January 31, 2023

Webinars

View all

Next-Generation MSP Platform: The Building Blocks for Your Business

February 15, 2023

The SMB Opportunity: How to Sell and Service the SMB Market, Capture Customers and Expand Your Business

February 23, 2023

How To Boost Your Business With White-Label UCaaS

February 28, 2023

White Papers

View all

6 UCaaS Reseller Challenges and How Real World Businesses Solved Them

February 1, 2023

Frost Radar: North American UCaaS Market, 2022

February 1, 2023

The Complete Guide to White-Label UCaaS for Reseller Success

February 1, 2023

Channel Futures TV

View all

Coffee with Craig and James Episode 117: Cato Networks, Video Killed the Podcast Stars

Retired Astronaut Capt. Scott Kelly Previews His CP Expo Keynote

December 21, 2022

Fusion Connect Eyes Future with Intrado UC, Managed Network Customers

September 23, 2022

RingCentral Focused on Hybrid Work, Microsoft Teams, Other Integrations

September 23, 2022

Twitter

ChannelFutures

.@SafeGuard_Cyber rolls out new partner program for #MSSPs. dlvr.it/Sj7nP3 https://t.co/WAM8yY3li5

February 8, 2023
ChannelFutures

To share a strong brand story about your place in the channel, first you need to find your unique and differentiate… twitter.com/i/web/status/1…

February 8, 2023
ChannelFutures

.@Trellix launches new Xtend Global Channel Partner Program. #XDR dlvr.it/Sj7blb https://t.co/rEqajhFB7k

February 8, 2023
ChannelFutures

In the face of growing economic uncertainty, Channel Futures is taking an in-depth look at salaries & satisfaction… twitter.com/i/web/status/1…

February 8, 2023
ChannelFutures

At @DTEN_Global, the new partner program empowers global partners to increase expertise about the company's hardwar… twitter.com/i/web/status/1…

February 8, 2023
ChannelFutures

[email protected] Security names new CEO, closes $50 million in new funding. #SaaS dlvr.it/Sj79zD https://t.co/fwUmGYGboO

February 8, 2023
ChannelFutures

.@npdgroup forecasts B2B budgets will be lower in 2023, resulting in a 2% revenue decline year over year.… twitter.com/i/web/status/1…

February 8, 2023
ChannelFutures

#Microsoft embeds #ChatGPT into @bing promising to upend search. @msPartner dlvr.it/Sj59Xy https://t.co/1w4Fp0j9fP

February 8, 2023

MSP 501

The industry's largest and most comprehensive partner awards program.

Newsletters and Updates

Sign up for The Channel Report, Channel Futures Update, MSP 501 Newsletter and more.

Live Channel Events

Get the latest information on the next industry-leading Channel Partners event.

Galleries

Educational slide shows and images from live events.

Media Kit And Advertising

Want to reach our audience? Access our media kit.

DISCOVER MORE FROM INFORMA TECH

  • Channel Partners Events
  • Telecoms.com
  • MSP 501
  • Black Hat
  • IoT World Today
  • Omdia

WORKING WITH US

  • Contact
  • About Us
  • Advertise
  • Newsletter

FOLLOW Channel Futures ON SOCIAL

  • Privacy
  • CCPA: “Do Not Sell My Data”
  • Cookie Policy
  • Terms
Copyright © 2023 Informa PLC. Informa PLC is registered in England and Wales with company number 8860726 whose registered and Head office is 5 Howick Place, London, SW1P 1WG.
This website uses cookies, including third party ones, to allow for analysis of how people use our website in order to improve your experience and our services. By continuing to use our website, you agree to the use of such cookies. Click here for more information on our Cookie Policy and Privacy Policy.
X