Harvey Norman acquires Mac1 from Dick Smith

Harvey Norman has entered into a deal to acquire Mac1, the independent Apple service provider formerly owned by Dick Smith.

CRN understands that the electronics retailer will acquire most of the assets from Mac1, including the majority of full time staff.

During the most recent creditors meeting, McGrathNicol administrator Joe Hayes said that securing the “required Apple contracts” would be key to finalising the acquisition.

Dick Smith bought Mac1 in September 2014 for $1. It was understood that hiring founder Kenneth Hogg to drive Dick Smith’s education business was central to the deal. Nine months later, Dick Smith revealed its plans to bring Mac1 in as dedicated service kiosks inside its existing stores.

When Dick Smith sank into administration in January, Hayes told creditors it would be best if Mac1 was sold off as a separate company to see a better credit return. However, if Dick Smith was wound up, its creditors would also become creditors of Mac1.

At the time, Mac1 had 13 in-store kiosks in Adelaide, Albury, Armidale, Campbelltown, Canberra, Hobart, Innaloo, Marion, Melbourne, Narre Warren, Newcastle, Perth and Wollongong, and two dedicated retail stores in Canberra and Wollongong.

There are still lingering questions that are likely to be answered after the deal is made public. It’s unclear what specific assets Harvey Norman is set to acquire, other than employees. CRN understands there are approximately 40 staff employed by Mac1 through Dick Smith.

It’s also not yet known whether Harvey Norman will adopt the same strategy Dick Smith used, by integrating Mac1 service desks into existing retail stores.

Mac1 was founded in 1990 and was one of the largest independently owned Apple partners in Australia. It provided Apple services through its education technology business and had account executives in Queensland, New South Wales, Victoria, Tasmania and the Australian Capital Territory.