Best Buy Sells Cloud Business About 2 Yrs. After Buying It
Best Buy is selling a cloud-computing business, which it bought in 2011, to Japanese technology company Ricoh for an undisclosed sum.
Ricoh announced Tuesday that it is purchasing MindShift Technologies—a provider of IT, cloud, and data center services to small and mid-sized businesses—in order to deepen its service portfolio.
“As we have made clear over the past year, our Renew Blue business transformation calls for greater focus on the core of Best Buy’s business,” Best Buy spokesman Jon Sandler said in an emailed statement to Twin Cities Business. “The sale of MindShift was made with that goal in mind.”
Richfield-based electronics retailer Best Buy originally bought MindShift for $167 million during a time when it was focusing increasingly on mobile technologies.
At the time of Best Buy’s original acquisition of the company, investment firm Bernstein Research said that the MindShift deal indicated “another move by [Best Buy] to re-cast itself as a growth retailer.”
MindShift, when purchased by Best Buy, served more than 5,400 clients throughout the country. According to Ricoh, that number has since grown to 6,900.
MindShift currently has 650 employees in various offices throughout the country—including Minneapolis. Ricoh said that the business will continue to operate under its current name, management team, and capabilities.
The deal is expected to close in February. The acquisition announcement follows news of trying times at Best Buy as its poor holiday sales led to its stock falling nearly 30 percent last week.