ePlus Inc. Sells Financing Business for $180.1 Million

By Ahmed Jameison • Tuesday, September 16 15:55 • Permanent Link

Based on the press release, ePlus Inc. completed the sale of 100% of the membership interests of Expo Holdings, LLC, a Delaware limited liability company, and a wholly-owned subsidiary of the company, to Marlin Leasing Corporation. The sale involved the majority of the company's financing business segment. The buyer paid initial consideration of approximately $180.1 million in cash, with net cash proceeds of $156.7 million to ePlus Inc. The Initial Consideration is subject to a customary post-closing adjustment process based on the book value of the assets associated with HoldCo, resulting in a recognized receivable of $7.8 million.

In addition to the Purchase Price, ePlus Inc. may earn and receive Holdback Premium payments and two different types of Earn-Out payments based on the post-closing performance of the HoldCo Group. The company recognized a contingent asset of $13.5 million in the aggregate for these contingent receivables.

The press release also provided details on the company's human capital, where the number of employees in various functional areas changed over the years. For example, in 2025, the company had 2,151 employees, compared to 1,852 in 2024 and 1,705 in 2023.

The pro forma historical results for fiscal years 2021 and 2022 were presented in the Supplemental Pro Forma Financial Information, showing unaudited pro forma statements of income prepared as if the Transaction occurred on April 1, 2020. The Supplemental Pro Forma Financial Information also includes quarterly pro forma historical results for the fiscal years ending March 31, 2025 and 2024.

The unaudited pro forma condensed consolidated financial statements show the impact of the divestiture on the company's financials. For example, in the year ended March 31, 2025, the pro forma net sales from continuing operations amounted to $2,009,567, compared to $2,068,789 as reported. The company's operating income from continuing operations for the same period was $104,370 in the pro forma statement, reflecting the adjustments related to the divestiture.

Today the company's shares have moved 0.52% to a price of $75.02. If you want to know more, read the company's complete 8-K report here.

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