Electro Rent to Acquire Electronic Test Equipment Provider, Equipment Management Technology, Inc. for $11.1M

Electro Rent Corporation 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.