JB Hi-Fi acquires majority of Network Neighborhood
- 22 February, 2013 04:27
Network Neighborhood's Hugh Marquis
Electronics retailer JB Hi-Fi has bought a majority stake in education-focused corporate IT Services company Network Neighborhood.
Network Neighborhood will become part of JB Hi-Fi’s commercial division, which provides a range of products to corporate, government and education customers. The Network Neighborhood brand will be retained by JB Hi-Fi.
The deal is part of the strategy to help JB Hi-Fi become a “solutions provider” giving the retailer a services arm, and helping it in its ongoing expansion of its commercial division.
The partnership will help Network Neighborhood get a national presence and the ability to fullfill electronics and technology related needs of schools, replicating its success in Victoria. Network Neighborhood had over $25 million in 2012.
Network Neighborhood will look at growing organically at a national scale. Its CEO, Hugh Marquis, will remain with the business continuing his focus on strategic development.
JB Hi-Fi has the option to acquire the remaining shares of Network Neighborhood in 2014. JB Hi Fi’s other divisions include finance and telecommunications.
JB Hi-Fi posted a net profit after tax of $82.1 million in the first half, up three per cent from last year. For the first half, It reported a total of $1.82 billion in total sales, up 2.3 per cent from last year.
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