PCM, Inc.
| Company type | Public (until 2019) |
|---|---|
| Industry | Technology products and services, Direct marketing |
| Predecessor | Creative Computers Inc. |
| Founded | 1987 in Marina Del Rey, California, United States |
| Founder | Sam Khulusi, Frank Khulusi |
| Defunct | August 29, 2019 |
| Fate | Merged with Insight Enterprises |
| Headquarters | El Segundo, California , United States |
Area served | United States, Canada, Pakistan, Philippines, UK, Europe |
| Products | Technology products and services, IT solutions |
Number of employees | 3400 (2016) |
PCM, Inc. was a direct marketing firm focused on technology products and services, with its headquarters located in El Segundo, California. On August 26, 2019, it merged with Insight Enterprises. Established in 1987 under the name Creative Computers Inc. in Marina Del Rey, California, PCM conducted business via telemarketing, online platforms, printed catalogs, and retail showrooms.
By 2016, PCM reported annual revenues of approximately US$2.25 billion and operated more than 40 locations across the United States, Canada, Pakistan, and the Philippines, employing roughly 3,400 individuals globally.
Origins as Creative Computers Inc.
The company was founded in 1987 by brothers Sam and Frank Khulusi as Creative Computers. Initially, it operated as a mail order catalog business that promoted products through printed flyers and processed orders over a toll-free number. Its early focus was on Amiga computers from Commodore International, becoming the top mail order reseller for Amiga until Commodore ceased operations in 1994.
In early 1994, PC Mall obtained authorization to sell Apple computers through its catalog-based model, facilitated by Apple sales representative Ray Joseph. This collaboration allowed PC Mall to reach Apple’s highest sales tier and gain access to refurbished products, fueling rapid expansion. The company grew to include a call center with more than 100 seats, a distribution center, and significant corporate office space.
PC Mall went public in April 1995 after filing for an initial public offering earlier that year.
In January 2000, Creative Computers changed its name to IdeaMall, Inc. to highlight opportunities in Internet and B2B markets. The following year, the company rebranded again to PC Mall, Inc. to better represent its core business focus.
Expansion and acquisitions
In early 1995, the company broadened its catalog offerings to include PC Wintel products and relocated its distribution center near the FedEx hub in Memphis, Tennessee to support increased demand. Alongside mailing millions of catalogs monthly, it launched macmall.com and pcmall.com in 1996, strengthening ties with Microsoft through key promotional efforts led by Ray Joseph.
Between 1996 and 1997, the firm acquired Computability (based in Milwaukee) and Elek-Tek (from Chicago), both specializing in PC Wintel products. In 2001 and 2002, it further expanded by acquiring southern California companies Wareforce and Club Mac.
The company introduced onSale.com in 2011 to focus on daily deals and electronics e-commerce. In Q3 2006, its fully owned subsidiary PC Mall Gov, Inc. acquired GMRI's product division to enhance IT consulting services for Federal clients.
In Q3 2007, the acquisition of SARCOM from Lewis Center, Ohio added enterprise technology products and services; SARCOM’s consulting arm Abreon continues serving mid-market and enterprise customers. Later acquisitions included Data Systems Worldwide (DSW) in December 2009 and managed services provider NSPI in June 2010—both integrated under SARCOM.
In 2009, PCM launched Small Business Network (SBN), an online platform catering to small business owners. Early in 2010, HealthDynamix was established in Manassas, Virginia, delivering IT solutions tailored for healthcare sectors.
December 2012 marked the company’s rebranding from PC Mall, Inc. to PCM, Inc., trading on NASDAQ under the ticker PCMI. That same month saw acquisition of land in New Albany, Ohio for a Tier III cloud data center which became operational mid-2014 to complement existing facilities and bolster managed services such as cloud hosting and disaster recovery.
PCM continued its growth by acquiring En Pointe Technologies Sales, Inc., based in Gardena, California, in April 2015; this entity operates under the En Pointe brand. In November 2015, PCM purchased Systemax’s North American B2B operations including TigerDirect for $14 million.
January 2017 brought the acquisition of Canadian Microsoft Cloud solutions provider Stratiform Inc for C$2.1 million. By April that year, PCM expanded into UK and European markets through its subsidiary PCM Technology Solutions UK Ltd., which later acquired Stack Technology Holdings Ltd., a prominent UK technology services company, in September.
On August 30, 2019, PCM was acquired by Insight Enterprises, marking a significant advancement in its global business development and operations.
Subsidiaries
PCM, Inc. has developed multiple branches focused on distinct markets and operational roles.
- PCM Sales, Inc.
- Employing close to 1,000 staff members, PCM Sales stands as the company's largest segment. It supplies technology and IT products mainly to small and medium-sized enterprises through its online platform, catalogs, and social media channels. Additionally, it caters to corporate and enterprise-level customers.
- PCM Services
- This unit delivers computing solutions, data management, and other IT services to all clients across PCM's business spectrum.
- PCMG, Inc.
- PCMG specializes in direct marketing of IT products and services aimed at the public sector, federal agencies, and healthcare organizations within the United States. It provides hardware, software, networking, storage systems, and IT design services tailored for hospitals, clinics, non-profit entities, and private healthcare firms.
- PCM Sales Canada, Inc.
- Operating out of Montreal, this division addresses the needs of the Canadian marketplace.
- Acrodex Incorporated
- Acquired by PCM in 2015, Acrodex oversees TigerDirect.ca along with IT service offerings from its locations in Richmond Hill and Edmonton, Alberta.
- M2 Marketplace Inc.
- Known as MacMall in the market, this branch targets consumers by offering Apple products such as Macintosh computers, iPods, iPads, as well as home technology devices and related services.
- PCM Logistics LLC
- Established in 2002 in El Segundo, California, PCM Logistics manages administrative tasks and fulfillment operations including finance, marketing, IT support, daily operations, sales activities, human resources management, and facility oversight for PCM.
- PCM BPO LLC
- Founded in 2005 in Manila, Philippines, this fully owned subsidiary delivers back-office assistance encompassing marketing support, customer service, IT operations management, accounting functions, and sales support for PCM and its U.S.-based subsidiaries.
Financial Information
Following its merger with Insight Enterprises, Inc. (NASDAQ: NSIT), PCM was removed from NASDAQ trading on August 29, 2019. Prior to this change in status as a publicly traded entity (NASDAQ: PCMI), PCM disclosed financial statements including reported revenues of $1.424 billion in 2013.