Electro Rent Makes Las Vegas Acquisition


Electro Rent Corp. said it will acquire the assets of Equipment Management Technology Inc., a privately held provider of electronic test equipment that filed for bankruptcy protection earlier this year.

The Van Nuys company said late Thursday that it expects to pay about $11.1 in cash in a private sale through U.S. Bankruptcy court. The final price will be based on any closing and post-closing changes in Equipment Management Technology’s net accounts receivable, equipment inventory and revenue.

Equipment Management Technology rents, sells and leases new and used electronic test equipment, mostly to the aerospace/defense industry. Electro Rent anticipates substantial cost savings as it integrates and consolidates operations, inventory and customer base. It expects the deal, scheduled to close by Aug. 19, to be immediately accretive to earnings.

“This strategic transaction will deepen our equipment portfolio to help ensure that we are continually surpassing our mutual customers’ needs and expectations, while providing them with an expanded range of cost-effective solutions,” Chief Executive Daniel Greenberg said in a statement.

Shares earlier closed up $1.04, or 7.4 percent, to $15.09 on the Nasdaq.

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