SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): December 13, 2000
ELECTRO RENT CORPORATION
(Exact name of registrant as specified in its charter)
California 95-2412961 0-90611
(State or Other (I.R.S. Employer (Commission
Jurisdiction of Identification No.) File No.)
Incorporation or
Organization)
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
N/A
(Former name or former address, if changed since last report)
Item 5. Other Events.
On December 13, 2000, Electro Rent Corporation, a California
corporation, issued a press release announcing that it will receive $20.8
million to fully resolve its closing balance sheet and purchase price
disagreements with GE Capital Technology Management Services
("TMS"), regarding Electro Rent's acquisition of the TMS computer and
test and measurement equipment rental business.
On November 14, 1997, Electro Rent acquired the TMS business for a
purchase price of approximately $240.8 million. The acquisition was
accounted for as a purchase and, accordingly, the acquired assets and
assumed liabilities were recorded at their estimated fair value at the
date of the acquisition. The purchase price exceeded the fair market
value of net assets acquired resulting in goodwill of approximately $59.6
million.
The TMS acquisition agreement included provisions for a reduction
in the purchase price paid by Electro Rent in the event that Electro Rent
had objections to the TMS closing date balance sheet. Electro Rent's
objections were subject to resolution as set forth in the TMS acquisition
agreement and were the subject of on-going discussions between the
parties. Electro Rent took its objections into consideration when
recording the estimated fair value of net assets acquired. As a result,
the settlement is expected to reduce goodwill associated with the
acquisition.
Electro Rent Corporation (Nasdaq: ELRC) is the largest nationwide
organization devoted to the short-term rental and leasing of personal
computers, workstations and general purpose electronic test equipment.
In accordance with the General Instruction F to the Form 8-K, a copy of the
press release dated December 13, 2000 is attached as Exhibit 20 and is
incorporated herein by reference.
Item 7. Financial Statements and Exhibits
(c) Exhibits
20 Press Release dated December 13, 2000.
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: December 13, 2000
/s/ Craig R. Jones
Craig R. Jones
Vice President and
Chief Financial Officer
