Micro D Inc. of Santa Ana said Monday it is holding merger discussions with Frist Software Inc. of Lawrence, Mass., a move that could make Micro D the nation's largest wholesaler of personal computer products.
Lorraine Mecca, Micro D's founder, vice chairman and chief executive, said that although no papers have been signed, "there is agreement on both sides that we want to do the deal." Mecca said that if the merger is completed, the combination of Micro D's $114-million-per-year sales with the $60-million annual sales of First Software would create the country's largest computer distribution company.
The proposed merger comes as sales throughout the personal, or micro, computer industry are sagging and as both manufacturing and distribution companies are starting to combine their operations to survive the tougher times.
"Consolidations, mergers and strategic alliances--those are the three key moves in the industry," said Chris Christiansen, a personal computer analyst for the Yankee Group in Boston.