Merrimack, NH-based PC Connection Inc., a direct marketer of information technology products, will acquire MoreDirect Inc., an e-procurement supplier of IT products for medium-sized to large corporate and government organizations for $21 million. Before closing, MoreDirect will distribute to its shareholders $9 million in taxed but undistributed earnings.
MoreDirect reported net sales in 2001 of $219 million and pre-tax income of $9.2 million.
The boards of directors of both companies have unanimously approved the transaction and expect it to close within 30 days.
In addition to the sale price, PC Connection will pay additional cash based upon MoreDirect’s achieving targeted levels of annual earnings before income taxes through 2004. MoreDirect will operate as a wholly-owned subsidiary of PC Connection from its facilities located in Boca Raton, FL.
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