Action Computer Supplies scraps Insight merger

British reseller, Action Computer Supplies Holdings, has called off its proposed merger with US company Insight Enterprises Inc.

Action said the merger was cancelled because of predictions of slow sales and deteriorating results.

Despite healthy first quarter sales, Action's margins have eroded and the sales downturn is expected as the millennium approaches and customers concentrate on Y2K problems.

A reorganisation of the supplier's sales team is also said to have disrupted operations.