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 earnings.
"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 forward-looking statements.
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