Insight Enterprises completes $125M acquisition of Calence LLC
Insight Enterprises Inc. completed its $125 million acquisition of Calence LLC, marking the combination of two homegrown technology companies.
Insight (Nasdaq:NSIT) provides comprehensive technology solutions, while Calence’s technology solutions specialize in Cisco networking, advanced communications and managed services.
Up to an additional $35 million will be added to the purchase price if Calence achieves certain performance targets over the next four years. The deal also included a preliminary working capital adjustment of $4 million and the assumption of $7.4 million in debt.
The Calence acquisition was funded, in part, under a new five-year, $300 million senior revolving credit facility, which replaces two existing agreements payday loan.
Both companies are based in Tempe. In 2006, Calence Inc. merged with a unit of Phoenix-based Avnet Inc., Avnet Enterprise Solutions, to create Calence LLC. Avnet Inc. (NYSE:AVT) no longer has a stake in the business, but will remain a customer of outsourcing services.
"The closing of the acquisition advances our ability to serve as a trusted advisor of technology solutions to our clients and creates opportunities for us to provide more services to more of our clients," said Rich Fennessy, president and CEO of Insight, in a statement.