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10 Things You Need To Know About Office Depot's Eye-Popping CompuCom Acquisition
A Financial Win At The Outset?
Office Depot indicated that the CompuCom acquisition will be accretive in the first year after closure of the deal, which also creates an estimated $40 million in annual cost synergies between the two companies within two years. The acquisition adds revenue of about $1.1 billion to Office Depot's business portfolio.
However, Office Depot’s stock dropped 19 percent to $3.72 per share following the announcement of the deal Tuesday evening, in which the retailer lowered its guidance for the fiscal year 2017. Office Depot cited lower early fall sales and store traffic than normal, ’temporary’ higher supply chain costs and hurricane damage caused in Texas, Florida and Puerto Rico among the influencing factors. Office Depot stock has rebounded to $3.90 per share as of noon Wednesday.