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Insight Enterprises to Acquire PCM in Deal Valued at USD 581m
Wednesday 26 June 2019

26 June 2019 - Arizona, US-based Insight Enterprises (NASDAQ: NSIT), the global provider of Insight Intelligent Technology Solutions, has agreed to acquire California, US-based IT products and services provider PCM, Inc. (NASDAQ: PCMI), for USD 35 per share, the company said.
The transaction represents a 36% premium to its one-month average closing share price as of Friday, June 21, 2019. The transaction implies an enterprise value of approximately USD 581m (including cash and debt acquired).
Insight will fund the acquisition through cash on hand and borrowings under a new Asset Based Loan revolving credit facility.
The combination of the two organisations extends Insight's reach into areas where clients need help most: positioning their businesses for future growth, transforming and securing their data platforms, creating modern and mobile experiences for their workforce and optimising the procurement of technology.
Together, the combined organisation will be able to offer partners an even stronger salesforce globally, with increased footprints in North America and the United Kingdom.
Insight expects to realise annual run-rate cost synergies of approximately USD 70m by the end of 2021, with more than 50% of this to be realised in the first 12 to 18 months, primarily related to the consolidation of IT and delivery systems, and real estate and operational integration.
Insight Enterprises Inc. empowers organisations of all sizes with Insight Intelligent Technology Solutions and services to maximise the business value of IT.
PCM is a provider of multi-vendor technology offerings, including hardware, software and services to small, mid-sized and corporate/enterprise commercial clients, state, local and federal governments and educational institutions across the United States, Canada and the United Kingdom.
PCM has offices in 40 locations across these geographies and has more than 4,000 teammates, including more than 2,700 client-facing teammates in sales, technical and service delivery roles.
J.P. Morgan Securities LLC is acting as financial advisor and Sullivan and Cromwell LLP is acting as legal advisor to Insight.
B. Riley FBR, Inc. is acting as financial advisor and Sheppard, Mullin, Richter and Hampton LLP is acting as legal advisor to PCM.
Details
Date Published: 26/06/2019
Target: PCM, Inc
Country: USA
Deal Size: 581m (USD)
Sector: IT/Online Services
Type: LBO
Financing: Cash
Status: Agreed
Vendor:
Buyer: Insight Enterprises
Buyer Advisor: J.P. Morgan Securities , Sullivan and Cromwell
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