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HERNDON, Va. - ePlus inc. (NASDAQ:PLUS), a technology solutions provider with a market capitalization of $1.89 billion, announced Tuesday it has completed the sale of its U.S. financing business to Marlin Leasing Corporation, operating as PEAC Solutions. The transaction, which was initially announced on June 23, closed effectively on June 30.
PEAC Solutions is a portfolio company of the Asset Value Funds, which are sponsored and managed by HPS Investment Partners, LLC.
"The sale of our financing business will enable us to focus on technology solutions for our customers and provide ePlus with additional capital to invest both organically and inorganically," said Mark Marron, CEO and president of ePlus. According to InvestingPro data, the company already maintains a strong financial position with more cash than debt on its balance sheet and a healthy current ratio of 1.71.
The company plans to update its fiscal 2026 guidance during its next earnings call, scheduled for August 6, to reflect the impact of this transaction. InvestingPro analysis shows ePlus generating strong free cash flows with a yield of 16%, suggesting robust operational efficiency. The platform offers 8 additional key insights about ePlus’s financial health and growth prospects.
ePlus was represented in the transaction by Macquarie Capital (USA), Inc. and K&L Gates LLP. The company noted in its press release that the sale is subject to various terms and conditions as described in its Form 8-K filed with the Securities and Exchange Commission.
The transaction allows ePlus to concentrate on its core business of providing technology solutions, including artificial intelligence, security, cloud and data center services, and networking and collaboration. With annual revenue of $2.07 billion and a diluted EPS of $4.05, the company has demonstrated strong profitability in its operations. The company currently employs more than 2,100 people and maintains operations across the United States, United Kingdom, Europe, and Asia-Pacific.
PEAC Solutions specializes in providing finance solutions to equipment manufacturers, distributors, and dealers across various industries and asset classes, operating throughout North America, Europe, and the United Kingdom.
In other recent news, ePlus Inc. reported its financial results for the fourth quarter of fiscal year 2025, revealing a mixed performance. The company posted earnings per share (EPS) of $1.11, which fell short of analysts’ expectations of $1.23. Revenue for the quarter was $498.1 million, also missing the forecast of $523.83 million. Despite these misses, ePlus improved its gross profit margin to 29.3% from 23.5% the previous year, indicating stronger profitability on its sales. In another development, ePlus announced the sale of its U.S. financing business to Marlin Leasing Corporation, operating as PEAC Solutions. This transaction is expected to provide ePlus with additional capital to focus on growth opportunities in technology and services. William Blair analyst Maggie Nolan maintained an Outperform rating on the stock, viewing the divestiture as a positive move for ePlus in the long term. Looking ahead, ePlus provided guidance for fiscal 2026, forecasting low single-digit growth in net sales and mid-single-digit growth in gross profit and adjusted EBITDA.
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