Marks PCM’s Strategic Entry Into the Canadian Market
EL SEGUNDO, Calif., Oct. 28, 2015 (GLOBE NEWSWIRE) — PCM, Inc. (NASDAQ:PCMI) today announced that it has acquired Acrodex, Inc., a leading provider of hardware, software, services and solutions to enterprise, mid-market and public sector customers across Canada for a purchase price of CAD$16.5 million. Acrodex had revenues in fiscal year ended September 30, 2015 of CAD$147 million and CAD$225 million on an imputed revenue non-GAAP basis. Acrodex is ranked as the ninth largest solution provider in Canada according to the most recent CDN Top 100 Solution Provider list. PCM expects that Acrodex will be accretive to its 2016 earnings.
Headquartered in Edmonton, Alberta, Acrodex provides full end-to-end infrastructure solutions from initial plan and design, through procurement and installation, to full support and on-going management. The Company’s core business areas include software value-added reseller services, software asset management and hardware sales and services, including client device products, servers, storage, network, printers and a full complement of accessories and devices. Services are a significant component to Acrodex’s product mix and include managed services, cloud-based services, consulting, IT management and other IT service areas.
Frank Khulusi, PCM’s Chairman and Chief Executive Officer, stated, “Acrodex’s successful 30-year history in Canada, tenured and strong customer and vendor relationships, impressive services portfolio and revenue stream, vast array of high-end vendor technical certifications, coveted Microsoft Canada LSP status and its 445 committed and loyal employee base launch PCM into the Canadian market in a grand, formidable manner and provide us with a wonderful platform to build from and expand. For those customers with a presence in both the U.S. and Canada, the Acrodex acquisition brings us the capability to provide a one-stop shop for their IT solutions needs.”
The strategic vendor partner relationships of PCM and Acrodex line up nicely and, as result of the acquisition, are now expected to be even deeper and stronger including our relationships with Microsoft, Cisco, HP, Dell and Lenovo among many others. Almost 75% of Acrodex’s personnel are technical professionals and many of them hold the highest-level certifications from leading partners. This technical strength is a key asset of the organization and provides excellence in service and support to Acrodex’s current and future customer base.
Karim Amarshi, Acrodex’s Chief Executive Officer, stated, “We have built Acrodex into a leading technology solutions provider and are very pleased to be joining the PCM family. PCM’s extensive capabilities, vast customer and vendor relationships, sales organization size and strength, and brand equity will bring the resources to propel Acrodex to the next level.”
Jay Miley, PCM’s President, noted, “Acrodex’s strong business fundamentals, experienced management and high concentration of services revenue is an attractive opportunity for PCM. We believe the operational efficiencies gained by combining Acrodex’s footprint in Canada and PCM’s extensive organization will drive deeper presence and scale in North America.”
PCM will address any further questions regarding this acquisition at its upcoming earnings conference call scheduled for Thursday, October 29th at 1:30 p.m. Pacific Time.
Morgan, Lewis & Bockius LLP, led by Bryan S. Gadol and Randy Wood, represented PCM in the transaction. Acrodex was advised by martinwolf, a leading M&A advisory firm focused on the mid-market IT space.
About PCM, Inc.
PCM, Inc., through its wholly-owned subsidiaries, is a leading technology solutions provider to small and medium sized businesses, mid-market and enterprise customers, government and educational institutions and individual consumers. Including pro forma results from our acquisition of En Pointe in April 2015, we generated over $1.7 billion in revenue in 2014. For more information please visit investor.pcm.com or call (310) 354-5600.
About Acrodex, Inc.
Through uncompromising integrity, passion for our customers’ success, and a commitment to excellence, Acrodex has proven their ability to offer customized end-to-end IT solutions. With over 30 years’ experience in Information Technology, Acrodex serves large and mid-tier organizations through end-user device lifecycle management, data center managed services, procurement as a service, software licensing and cloud solutions.
Forward-Looking Statement Disclosure
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include the statements regarding the Company’s expectations, hopes or intentions regarding the future, including, but not limited to, expectations or statements related to the impact of the acquisition on our business, operations and earnings, the continued development and growth of the IT solutions business, our ability to achieve any level of sales or operating results, the platform the acquisition provides us in Canada and North America. Forward-looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any such statement. Factors that could cause our actual results to differ materially include without limitation the following: risks associated with acquisitions and investments, including the challenges and costs of closing, integration, and achieving anticipated synergies expected from the acquisition; the ability to retain key personnel; each company’s ability to successfully execute its business strategies; competitive conditions in the industry; delays or reductions in spending on information technology by customers; competitive pressures, including pricing and new product and service offerings; the impact of any acquisition on relationships with key customers and vendors; business cycles affecting the markets in which the companies conduct business; uncertainties relating to the relationship of the number of account executives and productivity; decreases in revenues related to sales resulting from the loss of customers; changes in our vendors products; increased competition and pricing pressures, including, but not limited to, increased competition from direct sales by some of our largest vendors; risks of decreased sales related to the potential lack of availability of government funding applicable to our public sector customers; availability of key vendor incentives and other vendor assistance; the impact of seasonality on our sales; availability of products from third party suppliers at reasonable prices; risks of business and other conditions in Canada and the limited experience of PCM’s executive management operating in the Canadian market, which could prevent us from realizing expected benefits from the acquisition; increased expenses, including, but not limited to, interest expense; our advertising, marketing and promotional efforts which may be costly and may not achieve desired results; risks related to our ability to integrate the acquisition, including but not limited to risks of IT systems integration; risks due to shifts in market demand; litigation by or against us; currency fluctuation risks and economic conditions generally. Additional factors that could cause actual results to differ are discussed under the heading “Risk Factors” and in other sections of our Form 10-Q for the 2015 fiscal quarter ended June 30, 2015, on file with the Securities and Exchange Commission, and in our other periodic reports filed from time to time with the Commission. Acrodex sales for the periods provided herein are not necessarily indicative of the sales that may be expected for any future period. All forward-looking statements in this document are made as of the date hereof, based on information available to the Company as of the date hereof, and the Company assumes no obligation to update any forward-looking statements.
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Source: Press Release
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