Cloud Money

Ricoh to Acquire mindSHIFT from Best Buy

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Consumer electronics giant Best Buy is selling its cloud computing business mindShift Technologies Inc. to Ricoh.

MindShift will continue to operate under the same name and is not expected to undergo management or other major changes. Terms of the deal were not disclosed, and it is expected to be completed in February.

Ricoh continues to expand its portfolio of service offerings with mindSHIFT’s cloud services and managed IT business. Ricoh also gains from mindSHIFT’s significant US data center footprint.

“With the addition of these highly skilled engineering and customer-facing resources to our existing services organization, Ricoh can now offer a greatly enhanced range of services for its customers,” said Martin Brodigan, Chairman and Chief Executive Officer, Ricoh Americas Corporation. “We are very much looking forward to working with our small and medium-sized customers to maximize these combined capabilities to their greatest benefit.”

MindSHIFT serves businesses in the legal, healthcare, financial services, non-profit, and education sectors, which Ricoh feels compliments their established market. While owned by Best Buy, mindSHIFT grew from 500 to 650 employees, and currently serves nearly 7,000 clients.

Best Buy has shifted its strategy to grow its core business in the wake of disappointing sales results, and the sale of mindSHIFT follows the company’s exit from venture capital and the European market last year.

Best Buy acquired mindSHIFT in 2011 for $167 million in a move to diversify and become more of a one-stop-shop for SMBs.

While the gap between consumer electronics retailing and cloud hosting was too great to yield the benefits hoped for, Ricoh’s focus on business clients and IT services may prove a better fit.

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