PC Connection acquires software technology firm
Softmart deal seen as helping NH firm grow sales to larger businesses
PC Connection has purchased Softmart, a firm based outside of Philadelphia that sells software technology to institutions with more than 200 employees and $200 million in sales. The terms of the deal are not announced.
The Merrimack-based company said the deal will help it continue to grow its business selling IT to larger businesses and institutions.
In the last year, small business sales constituted 41 percent of PC Connection’s sales, with 37 percent going to large businesses and 22 percent to the public sector.
“Through this acquisition, PC Connection is enhancing its service and solutions capabilities, including our cloud services, and strengthening our position with Microsoft,” said CEO Tim McGrath
PC Connection record $2.6 billion in sales last year with a net income of $46.8 million, up a little more than $4 million compared to the prior year.
In the first quarter of this year, however, sales fell 1.5 percent, to $572.4 million, largely because of a decline in the number of larger customers. Profits, however, increased by 5.6 percent, to $9.1 million, or 34 cents a diluted share.
McGrath said that he expected the deal to be accretive to PC Connection’s earnings, but offered no details.
Richard Sloane, Softmart’s founder and chairman, will be leaving the organization to pursue other interests. The company will continue to operate under the Softmart, PC Connection said.