From the Wires
PC Connection Acquires ValCom Technology
Mar. 17, 2011 04:07 PM
PC Connection, Inc. (NASDAQ: PCCC), 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.
PC Connection Sales Corporation (800-800-5555), the original business of PC Connection, Inc. serving the small- and medium-sized business sector, is a rapid-response provider of IT products and services. It offers more than 300,000 brand-name products through its staff of technically trained sales account managers and catalog telesales representatives, catalogs, and publications, and its website at www.pcconnection.com.
MoreDirect, Inc. (561-237-3300), www.moredirect.com, provides corporate technology buyers with a comprehensive web-based e-procurement solution and in-depth IT supply-chain expertise, serving as a one-stop source by aggregating more than 300,000 products from the inventories of leading IT wholesale distributors and manufacturers. MoreDirect’s TRAXX™ system is a seamless end-to-end interface that empowers clients to electronically source, evaluate, compare prices, and track related technology product purchases in real-time.
GovConnection, Inc. (800-800-0019) is a rapid-response provider of IT products and services to federal, state, and local government agencies and educational institutions through specialized account managers, catalogs, and publications, and online at www.govconnection.com.
PC Connection Express, Inc. (888-800-0323) is a rapid-response provider of computer products and consumer electronics to home, home office, and small office users. Customers can purchase the best-known brands in the industry online at www.pcconnectionexpress.com or order by calling a trained sales specialist. The subsidiary includes the MacConnection brand (800-800-2222), one of Apple’s largest authorized online resellers at www.macconnection.com.
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“Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995: This release contains forward-looking statements that are subject to risks and uncertainties, including, but not limited to, the impact of changes in market demand and the overall level of economic activity and environment, or in the level of business investment in information technology products, competitive products and pricing, product availability and market acceptance, new products, fluctuations in operating results, the ability of the Company to manage personnel levels in response to fluctuations in revenue, and other risks that could cause actual results to differ materially from these detailed under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission for the year ended December 31, 2010. More specifically, the statements in this release concerning the Company’s outlook for 2011 and other statements of a non-historical basis (including statements regarding the Company’s ability to leverage the resources of ValCom Technology over its current customer base) are forward-looking statements that involve certain risks and uncertainties. The Company assumes no obligation to update the information in this press release or revise any forward-looking statements, whether as a result of any new information, future events, or otherwise.
Published Mar. 17, 2011Copyright © 2011 SYS-CON Media, Inc. — All Rights Reserved.Syndicated stories and blog feeds, all rights reserved by the author.
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