decor decor
"A business that makes nothing but money is a poor business."

-Henry Ford

March 16,2015

PCM, Inc. to Acquire Certain Assets of En Pointe Technologies Sales, Inc.

martinwolf Transaction Analysis

Financial Information

  • Total Transaction Size: $15 million, plus 3 year contingent earnout

Transaction Facts

  • PCM, Inc. (NASDAQ:PCMI) announced earlier today that it has entered into an agreement to acquire the assets of En Pointe Technologies Sales, Inc.’s IT solution provider business, excluding certain current tangible assets.
  • PCM, Inc. is a leading technology solution provider with revenues of $1.4 billion for the year ending December 31, 2014.
  • En Pointe, one of the largest independent IT solution providers, had unaudited revenue of $411 million for their trailing twelve months ending December 31, 2014.
  • Once the transaction is closed the En Pointe existing management team will continue to manage the day-to-day business.
  • PCM, Inc expects the transaction to be accretive to earnings starting in the 3rd quarter of 2015.
  • The transaction is expected to close by April 1, 2015.

Acquiring Additional Customers, Services and Capabilities

  • What’s the Big Deal?: This transaction is the largest acquisition ever made by PCM and is expected to provide a number of benefits by boosting PCM’s vendor network and scale. In addition to providing operations benefits such as cost savings and synergies, the transaction adds to PCM’s portfolio of technical skills and offerings, which are particularly critical as vendors are emphasizing services as part of the full solution to their customers.
  • A Space Defined by Consolidation: This transaction continues consolidation trends in the Solution Provider space as changing markets,  technologies, and cloud software and services impact how IT services, products, and software will be brought to market in the continuing changing landscape. Two recent examples of this consolidation include Arrow’s acquisition of immixGroup earlier this month and Millstein Group’s acquisition of DLT Solutions, another SP500 top 50 member.
  • Growing its Gross Margin: En Pointe’s gross margin is higher than that of PCM, as a result of the company’s higher mix of software and solution sales. This transaction will help PCM transition to a higher value-added reseller model.

For more information on this transaction, click here. martinwolf advised En Pointe in this transaction.

 

previous post Back to Articles next post

31 Jan 2023

Rising Interest Rates Chill Private Equity Pace

After a year of strength on the private equity front, 2022 is now in the rearview mirror and industry professionals anticipate a downgrade in performance for the coming year.   Despite the fluctuations of the past few years, private equity has withstood the challenges relatively well. However, in certain areas such as exit activity and...

18 Jan 2023

IT Industry Titan John McKenna Announces Retirement 

Congratulations to John McKenna, CEO of ConvergeOne, who announced his retirement today after 14 years at the helm. John has been an integral part of the IT industry for more than 30 years, and his leadership, dedication, and hard work have set the gold standard as a titan in our industry.   John’s tenure at...

21 Dec 2022

Happy Holidays – The 2022 martinwolf Annual Letter

View a pdf of this letter here.    Dear Clients, Partners, and Friends, It’s hard to believe we are closing the books on our 25th year in business. Looking back at our extraordinary colleagues past and present, hundreds of clients, and a global network of buyers and friends, I want to start this year’s letter...