has purchased certain fixed assets of Elcom International, Inc.’s
IT fulfillment and IT professional services business for $2.15 million in cash. The deal includes Elcom’s customer lists, contracts and certain limited liabilities.
The transaction includes Elcom’s agreement not to compete and non-solicitation of customers, purchased software and a perpetual software license for fulfillment transaction processing, and 300,000 warrants for Elcom common stock with a strike price of $1.03 per share. To minimize customer disruption, ePlus has retained Elcom for a limited period to provide transitional services.
The Herndon, Va.-based ePlus hired 98 former Elcom personnel and has established sales offices in greater Philadelphia, New York City, Boston, and San Diego.
“This acquisition broadens our reach into key markets and adds valuable customer relationships. As a customer-focused company, we are looking forward to providing the best possible support and services to our new customers, and I believe our acquired customers will quickly realize the benefits of doing business with ePlus,” said Kleyton L. Parkhurst, senior vice president of ePlus. It also creates an excellent opportunity for ePlus to cross-sell our solutions. I would like to welcome all of our new customers and employees to ePlus,”
The Norwood, Mass.-based Elcom operates two wholly-owned subsidiaries, elcom, inc., an international provider of remotely-hosted e-procurement and private e-marketplace solutions and Elcom Services Group, Inc., which will provide managed services to ePlus according to a managed services agreement.
ePlus is a provider of Web-based e-procurement, asset management, financing, leasing, sourcing, and e-content technology and services. Founded in 1990, the company has more than 30 locations throughout the U.S.