MERRIMACK, N.H.--(BUSINESS WIRE)--PC Connection, Inc. (NASDAQ: PCCC), a national provider of a full range of information technology (IT) solutions to business, government, healthcare, and education markets, announced today that Softmart, a global supplier of information technology and service solutions, has been acquired by PC Connection.
Headquartered in the Philadelphia metropolitan area, Softmart, Inc. has served technology users for over 34 years. With over 200 employees, the company provides products and services to computer users including business, government, educational, and healthcare organizations. In addition to information technology, Softmart provides complete end-to-end services including volume software license programs and all affiliated license support. The company will continue to be operated under the Softmart name. Founder and Chairman Richard Sloane will be leaving the organization to pursue other interests.
Timothy McGrath, President and CEO of PC Connection, Inc. said, “We are excited about our acquisition of Softmart, and look forward to leveraging their talent, resources, and capabilities across our organization. Richard Sloane and his team built a very successful company over the years by focusing on customer service and effective management of IT resources. Through this acquisition, PC Connection is enhancing its service and solutions capabilities, including our cloud services, and strengthening our position with Microsoft as a tier-1, direct Cloud Solution Provider (CSP).”
The acquisition was structured as a purchase of certain assets and liabilities. Financial terms of the transaction were not disclosed. In the year ended December 31, 2015, Softmart generated approximately $200 million in revenue. The acquisition is expected to be accretive to PC Connection’s earnings, excluding transition costs and the amortization of acquired intangibles.
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About Softmart
Headquartered in Downingtown, PA, Softmart
provides a complete suite of IT products and solutions to thousands of
customers in business, government, education, and healthcare
environments. The company was founded in 1982 and prior to the
acquisition of PC Connection, Inc., was owned by Richard Sloane and his
family since that date.
About PC Connection, Inc.
PC Connection, Inc., a Fortune
1000 company, has three wholly owned sales subsidiaries: PC Connection
Sales Corporation, MoreDirect, Inc., and GovConnection, Inc.,
headquartered in Merrimack, NH; Boca Raton, FL; and Rockville, MD;
respectively. All three companies can deliver custom-configured computer
systems overnight from our ISO 9001:2008 certified technical
configuration lab at our distribution center in Wilmington, OH. In
addition, the company has over 2,500 technical certifications to ensure
that we can solve the most complex issues of our customers. 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 primarily 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, catalogs, publications, and its website at www.pcconnection.com. This company also serves consumer and small office users and is, under its MacConnection brand (800-800-2222), one of Apple’s largest authorized online resellers at www.macconnection.com.
MoreDirect, Inc. (561-237-3300), www.moredirect.com, provides corporate technology buyers with best-in-class IT solutions, in-depth IT supply-chain expertise, and access to over 300,000 products and 1,600 vendors through TRAXX™, our proprietary cloud-based eProcurement system. MoreDirect’s team of engineers, software licensing specialists, and project managers help reduce the cost and complexity of buying hardware, software, and services throughout the entire IT lifecycle.
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, publications, and online at www.govconnection.com.
“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, and the ability of the Company to manage costs in response to fluctuations in revenue, and other risks that could cause actual results to differ materially from expectations, including those 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, 2015. More specifically, the statements in this release concerning the Company’s outlook for 2016 and other statements of a non-historical basis (including statements regarding the Company’s ability to leverage the highly-skilled resources of Softmart) 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.
