Merisel

HIGHLIGHT: Raised $125 million in bond offering

CHALLENGE: Increasing sales to Datago affiliates

Merisel Inc. sold $125 million in senior notes in October, raising capital to pay off its ComputerLand acquisition debt and support sales growth.

The company, meanwhile, moved toward gaining some of the hoped-for synergy from its acquisition of the ComputerLand Datago business by rolling out its Master Choice program for Datago resellers.

Under the program, Datago resellers gained online access to Merisel's inventory and better volume pricing based on purchases from Datago and Merisel. The distributor also began promoting Datago's services through its Merisel telemarketing sales force.

In another strategic move, Merisel began promoting an online ordering and information service for resellers called SEL-

line, to roll out this quarter.

Merisel put added focus on its Sun Microsystems Inc. business, helping launch Sun's new Netra network servers and promoting an integration center for configuring and custom-building systems for Sun VARs.

The company acquired 450 acres of land in Cary, N.C., a portion of which it plans to develop into offices for a third U.S. telemarketing sales force and its growing Channel Services Group.

MicroAge

HIGHLIGHT: Signed new vendors to expand product offerings

CHALLENGE: To turn away from deals that lead to little or no profit

MicroAge Inc., Tempe, Ariz., spent the fourth calendar quarter like other master resellers, battling for dealers, trying to combat a competitive pricing environment and signing up new vendors.