|[August 11, 2011]
Electro Rent to Acquire Electronic Test Equipment Provider, Equipment Management Technology, Inc.
VAN NUYS, Calif. --(Business Wire)--
Electro Rent Corporation (NASDAQ:ELRC) today announced that it
will acquire the assets of privately held Equipment Management
Technology, Inc. ("EMT"), a provider of electronic test equipment that
filed for bankruptcy protection earlier this year, in a private sale
through the U.S. Bankruptcy court. The stated purchase price is
approximately $11.1 million in cash. The purchase price will be adjusted
based on certain closing and post-closing changes in EMT's net accounts
receivable, equipment inventory and revenue. The transaction, which is
expected to close on or about August 19, 2011, has received U.S.
Bankruptcy court approval.
Electro Rent said it anticipates realizing substantial cost synergies as
a result of the purchase, as it integrates EMT's equipment inventory and
customer base and moves operations to Electro Rent's headquarters. The
acquisition is expected to be immediately accretive to Electro Rent's
"EMT's electronic test equipment business is well matched to our own,"
said Daniel Greenberg, Chairman and CEO of Electro Rent. "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.
"Our solid balance sheet povides 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.
Based in Las Vegas, EMT rents, sells and leases new and used electronic
test equipment primarily to the aerospace/defense industry.
About Electro Rent
Electro Rent Corporation (www.ElectroRent.com)
is one of the largest global organizations devoted to the rental,
leasing and sales of general purpose electronic test equipment, personal
computers and servers.
"Safe Harbor" Statement:
Except for the historical statements and discussions above, our
statements above constitute forward-looking statements within the
meaning of section 21E of the Securities Exchange Act of 1934. These
forward-looking statements, which include, but are not limited to, the
company's ability to surpass its customers' expectations, provide
customers with an expanded range of services and become the world's most
recognized capital equipment business partner, reflect Electro Rent's
management's current views with respect to future events and financial
performance; however, you should not put undue reliance on these
statements. When used, the words "anticipates," "believes," "expects,"
"intends," "future," and other similar expressions identify
forward-looking statements. These forward-looking statements are subject
to certain risks and uncertainties. The company believes its
management's assumptions are reasonable; nonetheless, it is likely that
at least some of these assumptions will not come true. Accordingly,
Electro Rent's actual results will probably differ from the outcomes
contained in any forward-looking statement, and those differences could
be material. Factors that could cause or contribute to these differences
include, among others, those risks and uncertainties discussed in the
company's periodic reports on Form 10-K and 10-Q and in its other
filings with the Securities and Exchange Commission. Should one or more
of the risks discussed, or any other risks, materialize, or should one
or more of our underlying assumptions prove incorrect, our actual
results may vary materially from those anticipated, estimated, expected
or projected. In light of the risks and uncertainties, there can be no
assurance that any forward-looking statement will in fact prove to be
correct. Electro Rent undertakes no obligation to update or revise any
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