Best Buy Co. Inc. announced that it is selling off its IT outsourcing and cloud services provider that serves small and mid-size businesses.
Tuesday the company announced it has sold MindShift Technologies Inc., to Japan-based Ricoh, according to a report in the Minneapolis-St. Paul Business Journal.
The sale comes on the heels of difficult financial news for Best Buy. Last week, the company announced weaker-than-anticipated holiday sales. The deal now means Best Buy can focus more on its core business.
Terms of the deal were not disclosed, however Best Buy purchased MindShift in 2011 for $167 million. The Star Tribune reports at that time, analysts believed acquiring MindShift was a way for Best Buy to diversify beyond selling computers and other electronic devices.
Ricoh said through a news release that MindShift's IT Services capabilities and comprehensive Managed Services offerings will help Ricoh by expanding service offerings to its customers and support Ricoh's growth as a provider of IT Services.
MindShift works with around 6,900 clients from around the country. The company's President and CEO, Mona Abutaleb said, "We're excited about what this acquisition means to our customers; the impact of having a well-respected brand like Ricoh tied to our market leadership will bring great benefits to current and new customers around the country."
Under the deal, MindShift will remain a fully owned subsidiary of Ricoh. It will continue to operate under the same name and management.
MindShift currently has 650 employees at offices in Boston; Chicago; Long Island, New York; Minneapolis; Morrisville, North Carolina; New York City; Philadelphia; Washington, D.C.; and Austin, Houston, San Antonio and Dallas, Texas.
On Tuesday, shares of Best Buy closed up .16% on the New York Stock Exchange.