Mergers & Acquisitions

Mergers & Acquisitions

Share
August 12, 2011

Electro Rent to Acquire Equipment Management Technology in $11.1 Million Cash Deal



Electro Rent Corporation, a global organization devoted to the rental, leasing and sales of general purpose electronic test equipment, personal computers and servers, announced its acquisition of the assets of Equipment Management Technology, Inc. (EMT).

A privately held company, EMT is a provider of electronic test equipment. Earlier this year, the company filed for bankruptcy protection. Hence the transaction will take place through the U.S. Bankruptcy court. The Las Vegas-based company mainly serves the aerospace/defense industry with new and used electronic test equipment. Electro Rent Corporation, which is seeking to enhance its equipment portfolio, found that EMT’s electronic test equipment business is well matched to its own. The acquisition will enable both the parties to better serve their mutual customers.

In a press release, Electro Rent Corporation  revealed that purchase price has been fixed at approximately $11.1 million in cash. The transaction, which is expected to close on or about August 19, 2011, has received U.S. Bankruptcy court approval, the acquiring company further informed.

Electro Rent plans to integrate EMT’s equipment inventory and customer base and moves operations to Electro Rent’s headquarters, post acquisition. The company said that it anticipates realizing substantial cost synergies as a result of the purchase.  The acquisition is expected to be immediately accretive to Electro Rent’s earnings.

“EMT’s electronic test equipment business is well matched to our own. This strategic transaction will deepen our equipment portfolio to help ensure that we are continually surpassing our mutual customers’ needs and expectations, while providing them with an expanded range of cost-effective solutions. We remain committed to sharing our strong history of service excellence and responsiveness with EMT’s customers,” Chairman and CEO of Electro Rent Daniel Greenberg explained in a press release.

“Our solid balance sheet provides us with considerable flexibility, allowing us to act quickly when strategic opportunities to drive growth arise. This acquisition will serve us well as we work toward becoming one of the world’s most recognized test and measurement and telecommunications capital equipment business partners,” Greenberg added.

Earlier this month Electro Rent Corporation reported an 88.7 percent increase in net income on a 47.9 percent increase in total revenues for its fourth fiscal quarter ended May 31, 2011, compared with the same quarter a year ago. For the full year, net income advanced 104.8% on a 56.8% increase in total revenues over fiscal 2010.

Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO West 2011, taking place Sept. 13-15, 2011, in Austin, Texas. ITEXPO (News - Alert) offers an educational program to help corporate decision makers select the right IP-based voice, video, fax and unified communications solutions to improve their operations. It's also where service providers learn how to profitably roll out the services their subscribers are clamoring for – and where resellers can learn about new growth opportunities. To register, click here.


Madhubanti Rudra is a contributing editor for TMCnet. To read more of her articles, please visit her columnist page.

Edited by Rich Steeves
Share


blog comments powered by Disqus


FREE eNewsletter

Financial Technology Industry News