El Segundo’s PCM Acquires En Pointe Technologies Sales Inc.

At Spotora & Associates, our Los Angeles mergers and acquisitions attorneys understand the complexities involved when one company acquires or merges with another.  Purchasing another company must be approached carefully and thoughtfully, with the assistance of a skilled lawyer.  Recently, El Segundo’s PCM Inc. purchased some of the assets of En Pointe Technologies Sales Inc., an IT firm who specializes in Microsoft products according to an article at the Los Angeles Business Journal.

PCM Inc. manufactures MacMall and PC Mall technology product catalogs in addition to information technology solutions designed for both local governments and businesses.  In acquiring specific assets from En Pointe Technologies Sales, PCM agreed to pay $15 million for the IT solutions acquired from En Pointe, a Gardena-based company.  Over the next three years, PCM will also pay 10% of certain agreed upon services revenues and 22 1/2% of the company’s future adjusted gross profit, according to a filing with the SEC (Securities and Exchange Commission.)

En Pointe is expected to retain its inventory and accounts receivable; this includes a $72 million contract over the next five years to provide more than 30 Los Angeles County departments with cloud-based software, a contract that was signed in June of 2014.  At the time the company’s year ended on September 30, 2014, revenue was reported to be $393 million.

The acquisition deal between PCM and En Pointe is scheduled to close on April 1st of this year, with PCM planning the creation of a new division which will assume the En Pointe name.

According to chairman and chief executive of PCM Frank Khulusi, the company feels that acquiring En Pointe will complement PCM’s commercial and public sector segments.  In addition, the 240 employees of En Pointe will be offered equivalent positions at PCM.

Bob Din, Chief Executive at En Pointe, founded the company more than two decades ago in 1993.  When the acquisition of En Pointe by PCM was announced on Monday, shares at PCM closed at $9.11, an increase of one percent.

We understand how difficult it can be in making a decision to acquire a company, and all of the issues involved including often times difficult negotiations, regulatory filings, reaching your objectives and goals, tax implications, and more.  At Spotora & Associates, our LA acquisition lawyers want to help ensure your decisions are solid, smart, and most important of all, that all transactions and strategies are sound, protecting you from potential litigation in the future.

Tags: , , , , ,

This entry was posted on Tuesday, March 17th, 2015 at 8:07 am and is filed under Business & Corporate Law, Contract Law, Technology. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.