Highstreet, a leading high-end consumer electronics retailer, is seeking to acquire IT Solutions, Inc. of Los Angeles and a company called eos.
Highstreet is buying the new entity for $1.6 billion and selling it to eos for $2.3 billion.
High street is seeking a new board of directors and the purchase of the eos group, which includes the largest maker of computer servers, is expected to close in the third quarter of 2017.
High Street also is in talks with a number of other potential acquirers.
HighStreet CEO Richard Gelfond told the Financial Times last month that the transaction is being made “without any formal discussions” with the eOS group.
High Streets board of trustees Chairman and CEO, Paul Dales, told Bloomberg that the board has been meeting regularly with High Street executives and is “very excited” about the deal.
Highlanders’ first-quarter revenue rose 2% to $2 billion, compared to the same period a year ago.
The company reported revenue of $2,926 million, up 14% from the same quarter a year earlier.
Highest is also looking to take a larger stake in eos, which has a market value of $3.2 billion.
Highstreet, which makes high-quality computers, monitors and smart TVs, and has a long history of investing in high-tech and cloud services, said in a statement that the new company will be led by Paul Gelfonds chief executive officer.
“Highstreet has been at the forefront of high-performance computing and data center services for over 30 years, and we’re proud to see that our customers are also buying in with this acquisition,” Gelfords said in the statement.
The acquisition will also give Highstreet access to eOS’s large portfolio of cloud computing solutions, Highest said.
The deal has a $2bn valuation and is expected on the open market within the next few weeks, according to Highstreet.
Highlands sales rose by 12% year-over-year to $11.6 million, according the company.
Hightops revenue grew 13% year over year to $13.1 billion, up from $11 billion a year before.
Highiest said that it expects to close its first quarter 2017 profit at $1 billion or $2 a share.
Highies revenues for 2016 fell by $500 million compared to 2015, but the company has made a series of improvements to its cloud services.
“We have been investing in cloud and our cloud products, which are providing customers with the most efficient cloud computing experience,” Gefonas said.
“We expect this acquisition to help us further deliver on our promise to deliver an outstanding cloud computing service.”