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ePlus expands services with Bailiwick acquisition

Published 20/08/2024, 13:42
PLUS
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HERNDON, Va. - ePlus inc. (NASDAQ NGS: PLUS), a prominent provider of technology solutions and services, announced Monday that its subsidiary, ePlus Technology, inc., has completed the acquisition of Bailiwick Services, LLC. The Minnesota-based Bailiwick is recognized for its nearly 30 years of professional and managed services, particularly in large-scale operations for sectors including retail, financial services, and hospitality.

The acquisition, which closed on August 19, 2024, aims to enhance ePlus's service offerings by integrating Bailiwick's expertise in areas such as edge computing, physical security, and digital experience transformation. Mark Marron, CEO and president of ePlus, emphasized that the addition of Bailiwick aligns with the company's growth strategy and will provide customers with a comprehensive range of technology solutions from a unified source.

Bob Marko, CEO and president of Bailiwick, shared that joining forces with ePlus will afford their customers access to a broader spectrum of capabilities, talent, and resources, benefiting from the global reach of their new parent company.

While the terms of the transaction have not been disclosed, the move signifies ePlus's continued investment in expanding its services portfolio, as well as its commitment to delivering innovative technology outcomes. Bailiwick will operate as a wholly-owned subsidiary of ePlus Technology, inc.

ePlus is known for its focus on leveraging technology to create transformative business outcomes for its customers, offering a wide array of solutions and services across various technology spectrums. With this acquisition, ePlus and Bailiwick aim to provide enhanced operational and user experiences to enterprise customers throughout North America.

This news is based on a press release statement and reflects the latest strategic move by ePlus in the field of technology services.

In other recent news, ePlus Inc. reported mixed results for its fiscal year 2025 first-quarter earnings. The company experienced a 5.2% decline in net sales from the previous year, but saw positive trends in strategic initiatives and service revenues. Managed services, in particular, increased by 28% year-over-year. The finance segment also posted revenue growth, contributing to a 24.3% rise in adjusted EBITDA. The company's cash balance rose to $350 million, supporting strategic goals and share repurchase programs. Despite these mixed results, ePlus maintained its full-year financial outlook, forecasting net sales growth of 3-6% and an adjusted EBITDA range of $200-215 million. These recent developments show ePlus's commitment to growth and innovation, even in the face of challenges.

InvestingPro Insights

In the wake of ePlus inc.'s acquisition of Bailiwick Services, LLC, key financial metrics from InvestingPro provide additional context to the company's market position and future prospects. With a market capitalization of $2.45 billion and a price-to-earnings (P/E) ratio of 22.46, ePlus reflects a valuation that is attuned to its earnings potential. Notably, the company's P/E ratio has remained steady, showing a slight decrease to 22.4 when looking at the last twelve months as of Q1 2025.

InvestingPro Tips highlight that ePlus holds more cash than debt on its balance sheet, suggesting a solid financial foundation that could support future growth initiatives like the recent acquisition. Moreover, the company's strong free cash flow yield, as implied by its valuation, indicates a healthy financial position that could be advantageous for long-term investment.

From a performance standpoint, ePlus has seen a robust return over the last three months, with a 15.55% price total return, underscoring a positive trend in investor confidence. Additionally, the company's stock is trading near its 52-week high, at 98.66% of this peak value, which could reflect market optimism about ePlus's strategic moves and overall business trajectory.

For readers seeking deeper analysis and more InvestingPro Tips, the platform offers additional insights, including 11 more tips that could further inform investment decisions related to ePlus. These can be accessed by visiting https://www.investing.com/pro/PLUS.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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