Buyout for one of Australia's biggest Apple resellers

Apple premium reseller MyMac is set to be acquired and rolled up with Mac accessories wholesaler Monsta Industries.

MyMac, a 15-year-old Sydney and Melbourne business, is understood to be one of the largest privately owned Apple premium resellers in Australia. The company has a turnover of $14 million, according to buyer Broad Investments.

Monsta is an importer and wholesaler of Apple accessories that turns over $1 million a year. The buyout will give MyMac's stores access to cheaper accessories.

The deals, which remain subject to due diligence, will see MyMac combined with Monsta as well as another of Broad Investment's companies, managed services provider Mirrus, in one location. 

Attacking the education market is central to the acquisition strategy, with MyMac already targetting schools with device sales, network integration, security and break-fix services. The fact younger consumers also buy more accessories has not been lost on the investor.

Broad Investments will pay $200,000 cash for MyMac, plus 574,149,098 shares and 25 million incentive options. It had 30 days from 28 February to complete due diligence on the deal.

IT investor

ASX-listed Broad Investments turned over $3.8 million and generated $1.5 million of gross profit in the 2013-14 fiscal year. It is already active in the IT sector through Mirrus as well as Sydney telecommunications supplier Unified Business Communications.

A key attraction for the investment firm is MyMac’s growing repair and service business, which has grown 35 percent year-on-year and offers higher margins than the retail operation.

MyMac has a store in Federation Square, Melbourne, which received a major renovation in 2010, and which MyMac founder and managing director Steve Bardel once described as "probably the best Australian premium reseller location in Australia".

There is also a store located in St Kilda, Melbourne, as well as a business and education office in Moorabbin, Melbourne. A New South Wales store is located in the Moore Park SupaCenta in inner south Sydney.

The Apple reseller has been an acquisition target for some time, with Broad Investments executive chairman Vaz Hovanessian telling CRN that this was the fourth time the firm has tried to acquire MyMac, with others vying for the deal.

“It has been a bit of a coup. For us, this is a significant transaction,” Hovanessian told CRN.

“This is the first successful acquisition among others that are planned and we hope to bring you further good news in the coming weeks and months,” he said.

Bardel will stay with the business for at least three years and will join the company board.

The MyMac agreement follows the closure of a Next Byte store in the Melbourne CBD in February.