PCM Acquires Stratiform, a Technology Leader in Microsoft Cloud-Based Solutions
The acquisition strengthens PCM's Position as a Strategic Cloud Solution Provider
EL SEGUNDO, Calif., Jan. 03, 2017 (GLOBE NEWSWIRE) -- PCM, Inc. (NASDAQ:PCMI) a leading North American technology solutions provider, today announced a strategic acquisition of Stratiform, Inc. (Stratiform), an industry-leading provider of cloud IT solutions that includes consulting, professional, and managed services to clients across Canada. Stratiform, an innovative Gold Certified Microsoft Partner, has proven capabilities specializing in Microsoft cloud technology, including Azure Cloud solutions, Office 365, and Enterprise Mobility Suite.
Stratiform's unique "build your business from the cloud up" consultative approach will significantly strengthen PCM's position as a leader in enterprise cloud solutions, further enhancing its ability to provide clients with best-of-breed cloud strategy, advisory, onboarding and migration services, as well as on-going cloud management services.
PCM expects Stratiform to serve as a cornerstone to PCM's strategic cloud and related solutions offerings and to quickly leverage its leading cloud expertise in Canada into the United States and other new markets, strengthening PCM's established leadership position as a key differentiator in the IT marketplace. The acquisition deepens PCM's relationship with Microsoft and other best-of-breed technology companies, and
increases PCM's reach into SMB, Mid-Market, Enterprise, and Public Sector markets throughout North America.
Frank Khulusi, PCM's Chairman and CEO, stated, "The addition of Stratiform to the PCM family of companies reinforces our position as a leader of enterprise cloud solutions and services. We are thrilled to add the extremely talented Stratiform team to our Microsoft solutions focus, enhancing our Azure Cloud organization with new and innovative capabilities. Together, we are extremely well positioned to help our clients realize the business benefits of leveraging cloud technology both securely and strategically to maximize business value."
"We are very excited to be joining the PCM family. Our passion has long been to help our customers transform their businesses
through the use of cloud technologies," stated Jordan Byman, President of Stratiform. "This acquisition represents an opportunity to accelerate our growth plans and expand the Stratiform brand and presence throughout Canada and the United States. By leveraging PCM's extensive customer relationships and operational scale, we can help even more customers transform their organizations."
PCM purchased all outstanding shares of capital stock of Stratiform in the transaction for a purchase price of C$2.1 million paid at the December 29, 2016 closing and a potential maximum aggregate earn-out payable over a three year period of up to C$1.75 million. Stratiform had total revenues of approximately C$5.5
million for fiscal year ended July 31, 2016. PCM currently expects this strategic acquisition will initially have an immaterial effect on its bottom line and will address any related questions at its next earnings conference call.
About PCM, Inc.
PCM, Inc., through its wholly-owned subsidiaries, is a leading technology solutions provider to small and medium sized businesses, mid-market and enterprise customers, government and educational institutions and individual consumers across the United States and Canada. We generated net sales of nearly $2.0 billion in the twelve months ended June 30, 2016. For more information, please visit investor.pcm.com or call (310) 354-5600.
Forward-Looking Statement Disclosure
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include the statements regarding the Company's expectations, hopes or intentions regarding the future, including, but not limited to, expectations or statements related to the impact of the acquisition on our business, operations and earnings, our ability to leverage our existing business or to achieve any level of performance in the cloud and related solutions market, our ability
to achieve any level of sales or operating results. Forward-looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any such statement. Factors that could cause our actual results to differ materially include without limitation the following: risks associated with acquisitions and investments, including the challenges and costs of closing, integration, and achieving anticipated synergies expected from the acquisition; the ability to hire and retain key personnel; competitive conditions in the industry; delays or reductions in spending on information technology by customers; competitive pressures, including pricing and new product and service offerings; the impact of any acquisition on relationships with key customers and vendors; business cycles affecting the markets in which the companies conduct business;
uncertainties relating to the relationship of the number of account executives and productivity; decreases in revenues related to sales resulting from the loss of customers; changes in our vendors products; increased competition and pricing pressures, including, but not limited to, increased competition from direct sales by some of our largest vendors; risks of decreased sales related to the potential lack of availability of government funding applicable to our public sector customers; availability of key vendor incentives and other vendor assistance; the impact of seasonality on our sales; availability of products from third party suppliers at reasonable prices; risks of business and other conditions in Canada and the limited experience of PCM's executive management operating in the Canadian market, which could prevent us from
realizing expected benefits from the acquisition; increased expenses, including, but not limited to, interest expense; our advertising, marketing and promotional efforts which may be costly and may not achieve desired results; risks related to our ability to integrate the acquisition, including but not limited to risks of IT systems integration; risks due to shifts in market demand; litigation by or against us; currency fluctuation risks and economic conditions generally. Additional factors that could cause actual results to differ are discussed under the heading "Risk Factors" and in other sections of our Form 10-Q for the 2016 fiscal quarter ended September 30, 2016, on file with the Securities and Exchange Commission, and in our other periodic reports filed from time to time with the Commission. All forward-looking statements in this document are made as of
the date hereof, based on information available to the Company as of the date hereof, and the Company assumes no obligation to update any forward-looking statements.
Source: PCM, Inc.
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