ValCom and Inacomp Win Merger Approval : Franchises: The InaCom combination will be one of the largest computer retailers.

L.A. Times Archives

Aug. 7, 1991 12 AM PT

From Associated Press

OMAHA, Neb. —

ValCom Inc., an Omaha company that began selling computers to farmers and agricultural businesses, has merged with a Michigan company to form one of the nation’s largest computer retailers, officials said Tuesday.

Shareholders approved the merger of ValCom and Inacomp Computer Centers of Troy, Mich., in separate meetings Monday. The new company, InaCom Corp., will have annual revenues approaching $1 billion.

InaCom will cater mostly to business customers, offering personal computers, expertise and 24-hour service, said Bill L. Fairfield, president and chief executive officer of ValCom.

“As computers get more complex and applications get more complex, there is more demand for training users and the ongoing ability to instruct them,” Fairfield said.

ValCom and Inacomp stores will retain their names and logos, Fairfield said. New franchises could take either name, he said.

The merger follows Monday’s announcement that JWP Inc. succeeded in its bid for troubled computer retailer Businessland Inc., an acquisition that creates the No. 2 seller of personal computers after ComputerLand Corp.

JWP is a Purchase, N.Y., company that provides office security, heating and ventilation service and owns a computer retail chain. The new company will be called JWP Businessland.

Fairfield said the purchase of Inacomp will double the size of his company. “It gives us confidence we’re going to be a long-term player,” he said.

Fairfield said consolidation is the natural result as personal-computer retailing matures and sales expand more slowly.

ValCom and Inacomp said in April that they intended to merge. ValCom has 23 company-owned stores and 317 franchised stores and affiliated dealers. Inacomp has 52 company-owned stores and 317 franchise stores and affiliated dealers.

ValCom employs 620 people; Inacomp employs 1,247. Some jobs probably will be eliminated to avoid overlapping, Fairfield said.

ValCom started in the early 1980s selling computers to farmers and farm businesses as part of Valmont Industries Inc. of Valley, which owns 78% of ValCom.

Valmont Industries will own 39% of the merged company.