PC Connection Announces Acquisition of ValCom Technology
MERRIMACK, N.H.–(BUSINESS WIRE)– PC Connection, Inc. (NASDAQ:PCCC – News), a holder of companies that specialize in providing end-to-end information technology (IT) solutions to business, government, and education markets, today acquired ValCom Technology for $11.6 million, subject to confirmation of stockholders’ equity at closing. Under the terms of the stock purchase agreement, PC Connection paid the shareholders of ValCom Technology $8.6 million at closing and will pay up to an additional $3.0 million upon the achievement of certain performance milestones over the next eighteen months.
Headquartered in the Chicago metropolitan area, ValCom Technology has provided technology services to medium-to-large corporate organizations for over 28 years. With over 200 employees, the company delivers infrastructure management and onsite managed services utilizing its proprietary cloud-based IT service management software, WebSPOC™. ValCom Technology provides network, server, storage, and mission-critical onsite installation and support in a highly scalable services delivery model.
Patricia Gallup, Chairman and Chief Executive Officer of PC Connection, said, “We are very pleased to have ValCom Technology join the PC Connection family of companies. ValCom’s Chairman and Chief Executive Officer Robert Green and his team have built a very successful company that enables its customers to more effectively manage their IT resources. We are expanding our managed services offerings through this acquisition, and we look forward to leveraging the resources of this highly-skilled organization over our existing customer base.”
ValCom Technology will operate as a wholly-owned subsidiary of PC Connection from its current facility located in Itasca, Illinois. The company will continue to operate under the ValCom, ValCom Technology, and ValCom Technology Management Solutions tradenames. In the year ended December 31, 2010, it generated approximately $40 million in revenue, 50% of which was services, and operating income of approximately 7.5% of revenue. The acquisition of ValCom Technology is expected to be immediately accretive to PC Connection’s earnings.
About ValCom Technology Professional Computer Center, Inc. is incorporated under the laws of the State of Illinois and operates under the tradenames ValCom, ValCom Technology, and ValCom Technology Management Solutions. Headquartered in Itasca, Illinois, the company provides network, server, storage, and mission-critical onsite installation and support to medium-to-large organizations.
About PC Connection, Inc.
PC Connection, Inc., a Fortune 1000 company, owns four sales companies: PC Connection Sales Corporation, MoreDirect, Inc., GovConnection, Inc., and PC Connection Express, Inc., headquartered in Merrimack, NH, Boca Raton, FL, Rockville, MD, and Portsmouth, NH, respectively. All four companies can deliver custom-configured computer systems overnight from PC Connection Services’ ISO 9001:2000 certified technical configuration lab at its distribution center in Wilmington, OH. Investors and media can find more information about PC Connection, Inc. at http://ir.pcconnection.com.