Inacom
| Company type | Public |
|---|---|
| Industry | Computer hardware and services |
| Predecessor | ValCom Inc., Inacomp Computer Centers Inc. |
| Founded | 1991 |
| Founder | William L. "Bill" Fairfield (via ValCom Inc.) |
| Defunct | 2000 |
| Fate | Filed for Chapter 11 bankruptcy; distribution operations sold to Compaq |
| Headquarters | Omaha, Nebraska , United States |
Area served | United States |
Key people | William L. "Bill" Fairfield (President and CEO) |
| Products | Personal computers and related services |
Number of employees | ~12,000 (post Vanstar acquisition) |
Inacom Corporation (ICO:NYSE), headquartered in Omaha, Nebraska, was once recognized as a leading national provider of personal computers and related services, ranking as the third-largest and most lucrative computer distributor across the United States.
Origins
Established in 1991 through the merger of ValCom Inc.—which was founded in 1982 by William L. "Bill" Fairfield—and Inacomp Computer Centers Inc., Inacom secured a place on the Fortune 500 list in 1997 at number 436, retaining its position until the year 2000. Bill Fairfield held the roles of president and CEO throughout this timeframe.
Acquisition of Vanstar
On October 9, 1998, Inacom completed the purchase of Vanstar for an estimated $465–$480 million. This merger resulted in a combined workforce approaching 12,000 employees and generated revenues estimated at $7 billion.
The acquisition substantially increased Inacom’s debt load and diluted the equity of existing shareholders by issuing 27.7 million new shares in a stock exchange transaction—more than doubling the total shares outstanding. These factors, coupled with concerns over debt levels, led to a decline in Inacom’s stock value.
Moreover, Vanstar’s unrecognized credits compelled Inacom to revise its financial statements and delayed the submission of SEC filings for 1999 and the first quarter of 2000. The failure to meet filing deadlines resulted in the cancellation of credit agreements, difficulties in obtaining new financing, and ultimately, removal from the New York Stock Exchange due to non-compliance with listing standards.
Bankruptcy
On January 4, 2000, Inacom divested its distribution operations to Compaq for $369.5 million. Shortly thereafter, on January 7, IBM terminated its partnership with Inacom, severely affecting the company’s prospects. Within six months—less than two years after acquiring Vanstar—Inacom filed for Chapter 11 bankruptcy on June 16, 2000, and proceeded to lay off all employees.
In turn, Compaq was acquired by Hewlett-Packard in 2002.
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- Articles with short description
- American companies established in 1991
- American companies disestablished in 2000
- Computer companies established in 1991
- Computer companies disestablished in 2000
- Defunct computer companies of the United States
- Defunct computer hardware companies
- Defunct computer systems companies