Electro Rent Buys Telogy Assets


Electro Rent Corp. in Van Nuys announced Friday that it won an auction to acquire the assets of Telogy LLC, a reseller of electronic test equipment that filed for bankruptcy earlier this year.

The stated purchase price was $26.7 million, but that figure will be adjusted based on Telogy’s equipment sales and leases since Sept. 30.

Electro Rent said it expects to realize substantial cost savings in its operations as it absorbs Telogy’s equipment inventory and customer base. The company plans to move Telogy’s assets from Union City to Electro Rent headquarters in Van Nuys.

“This strategic purchase … will add measurably to our strong market position by broadening our equipment base and enhancing our ability to effectively meet the needs of customers,” Chief Executive Daniel Greenberg said in a statement.

The stock price of Electro Rent remains nearly unchanged by news of the purchase. In mid-day trading, shares of the company were up 12 cents, or 1 percent, to $12.52 per share.

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