MERRIMACK, N.H.--(BUSINESS WIRE)--
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.
pccc-g
"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.
PC Connection, Inc.
Stephen Baldridge, 603-683-2322
Sr. Vice
President of Finance
& Corporate Controller
Source: PC Connection, Inc.
News Provided by Acquire Media
