Cloud business mindSHIFT is Best Buy

Consumer electronics retailer Best Buy has acquired mindSHIFT Technologies, a day after announcing that it was pulling the plug on its joint venture with UK mobile phone business Carphone Warehouse.

The $167 million (£104 million) deal for cloud services company mindSHIFT is said by Best Buy to accelerate its growth in the small and mid-sized business IT services category.

In May 2008 Best Buy signed a £1.1 billion joint venture deal with Carphone Warehouse with the intention of taking on other UK electronics retailers such as PC World and Currys.

However the venture has now been terminated, and its 11 big box stores are set to close following losses of £46.7 million for the six months to 30 September.

The American company now intends to 'focus' on its 'small box' Carphone Warehouse shops, a move which ties in with its most recent deal.

The purchase of mindSHIFT is similar to its 2002 acquisition of computer repair and maintenance company Geek Squad, a business which is now imbedded into Carphone Warehouse stores.

Speaking on the acquisition of mindSHIFT, George Sherman, senior vice president of Best Buy Services, comments: 'There's no question that acquiring the skills, capabilities and clients of mindSHIFT has the potential to help expand Best Buy's global services capabilities in the vast small and mid-size business market.

'As important, the mindSHIFT team will bring added experience, talent and resources to the remote support capability we have been building within our multi-channel tech service Geek Squad.'

Chief executive officer of mindSHIFT, Paul Chisholm, says that both businesses are closely aligned in terms of corporate vision.

He adds: 'Best Buy is committed as a corporate objective to expand its small business IT services business, and mindSHIFT will be one of the foundations of this strategy.'