PC Connection (PCCC -0.6%) has acquired Philadelphia-based Softmart, an IT solution provider to thousands of customers.
Terms weren't disclosed, but PC Connection has purchased certain assets and liabilities in the deal. Software will continue to operate under that name, and Softmart founder Richard Sloane will leave the company to pursue other interests.
Softmart has 200-plus employees and generated about $200M in revenue last year. PC Connection expects the deal to be accretive to earnings.
Predicting a strong dollar will have a big impact on the company's bottom line, Barclays' Ben Reitzes has downgraded Ingram Micro (IM -3.8%) to Equal-weight, and slashed his target by $3 to $26.
Reitzes notes Europe accounted for 30% of Ingram's 2014 revenue, and that Q4 European sales missed Barclays' estimates in spite of benefiting from an extra week. "Management pointed to aggressive pricing and hits from currency, which materially depressed revenues. We don't see why those trends would abate over the near term, especially with the Euro depreciating further."
Fellow IT product distributors Tech Data (TECD -5.5%), PC Connection (PCCC -3%), Synnex (SNX -1.9%), and CDW (CDW -1.4%) are also selling off. Tech Data received 60% of its FQ3 sales from Europe; its FQ4 report arrives on March 19.
Reitzes also downgraded HP (NYSE:HPQ) to Equal-weight on forex concerns, but the tech giant has brushed off the downgrade, as well as Intel's Q1 warning.