SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 22, 1997
COMMISSION FILE NO. 0-9061
ELECTRO RENT CORPORATION
Exact name of registrant as specified in its charter
California 95-2412961 0-90611
(State of California) (I.R.S. Employer (Commission
Identification No.) File No.)
6060 Sepulveda Boulevard
Van Nuys, California 91411-2501
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (818) 786-2525
Item 5. Other Events.
On September 22, 1997, Electro Rent Corporation entered into a
definitive agreement to acquire the computer and test and measurement
equipment rental business of GE Capital Technology Management Services
(TMS), a division of GE Capital Services, for $320 million in cash.
The acquisition, which is expected to close by October 31, 1997, is
subject to certain closing conditions, including termination of a
waiting period under the Hart-Scott-Rodino Antitrust Improvements Act
of 1976.
Item 7. Financial Statements and Exhibits
(c) Exhibits
99 Press Release dated September 22, 1997
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this Report to be signed on its
behalf by the undersigned thereunto duly authorized.
ELECTRO RENT CORPORATION
Dated: October 1, 1997
/s/ Craig R. Jones
Craig R. Jones
Vice President and
Chief Financial Officer
FOR IMMEDIATE RELEASE
Neil G. Berkman Associates Company Contact:
1900 Avenue of the Stars Daniel Greenberg
Suite 2850 Chairman & CEO
Los Angeles, CA 90067 Electro Rent Corporation
(310) 277-5162 (818) 786-2525
ELECTRO RENT CORPORATION TO ACQUIRE THE
COMPUTER AND TEST AND MEASUREMENT EQUIPMENT RENTAL
BUSINESSES FROM A DIVISION OF GE CAPITAL SERVICES
VAN NUYS, CALIFORNIA, September 22, 1997 - Electro Rent Corporation
(NASDAQ:ELRC) announced today that it has entered into a definitive
agreement to acquire the computer and test and measurement equipment
rental businesses of GE Capital Technology Management Services (TMS),
a division of GE Capital Services, for $320 million in cash.
The acquisition, which is expected to close by October 31, 1997, is
subject to certain closing conditions, including termination of a
waiting period under the Hart-Scott-Rodino Antitrust Improvements Act
of 1976. Daniel Greenberg, chairman and chief executive officer of
Electro Rent, said, "We hope that the acquisition will be accretive to
earnings after certain merger-related and integration costs have been
accounted for in the periods following the closing." Greenberg noted
that Electro Rent plans to continue the local support services
currently provided by GE Capital TMS in major cities nationwide.
GE Capital Services, a wholly owned subsidiary of General Electric
Company, with assets over $227 billion, is a global, diversified
financial services company with 27 specialized businesses.
Electro Rent Corporation, with 500 employees and a rental equipment
portfolio valued at over $140 million, provides short-term rental and
leasing of personal computers, workstations and general purpose
electronic test equipment. For the fiscal year ended May 31, 1997,
Electro Rent reported net income of $24.1 million, or $1.94 per share,
on revenue of $150.5 million.
