En Pointe Technologies Up For Sale?

Bob Din, president and CEO of El Segundo, Calif.-based En Pointe, didn't return calls for comment. Interested suitors in the $328 million solution provider may include CDW, Vernon Hills, Ill., and Zones, Auburn, Wash., sources said.

A CDW spokesperson said the company wouldn't comment on the matter. Zones didn't respond to phone messages.

Industry observers said En Pointe, which was named Symantec's partner of the year earlier this month, would be a good fit for CDW.

"CDW needs to run more volume through its new Las Vegas distribution center in order to lower its SG&A and fuel further growth," said one channel source.

Another channel source noted that En Pointe also would add much-needed service capabilities to CDW's portfolio.

In a conference call with analysts earlier this week, CDW Chairman and CEO John Edwardson said the company is talking with acquisition targets, but sellers are asking for too much money.

"As we look at least at the public companies, none of [their market capitalizations] concerns me. What does concern me is the unrealistic nature of what their businesses are worth to CDW. Everybody believes we can run their business better than they can, and they want most of that value to go to their shareholders," Edwardson said. "Given where we are and where want to be, we will spend a lot of time looking [at acquisitions]. Sooner or later, we will find the right combination."

Added CDW executive vice president Harry Harczak, "Our view hasn't changed in terms of finding something that can deliver market share gain or be additive to the business. We would look at something that adds a new customer base or a product set or geographic reach, which could include in the [United] States or out of the States. We would look for things around those areas."

Edwardson said CDW needs another $1.5 billion in revenue from its new Las Vegas distribution center to reach peak productivity from the facility.

En Pointe shares closed Wednesday up 10 cents a share to $1.70 after the company announced preliminary results for its fiscal third quarter ended June 30. En Pointe said it expects to report total sales of $93.8 million to $94.8 million in the quarter, up from $92.6 million a year earlier. In its second quarter ended March 31, En Pointe posted a loss of $1 million on revenue of $71 million, a 3 percent decline in sales year over year.

If En Pointe is sold, it would mark the latest channel consolidation move. FishNet Security earlier this week acquired the commercial sales and professional services business unit of True North Solutions, Herndon, Va. The move adds a major East Coast component to FishNet's expanding footprint.

SCOTT CAMPBELL contributed to this story.