PITTSBURGH - Wesco International (NYSE: NYSE:WCC), a global leader in B2B distribution, logistics, and supply chain solutions, announced today the completion of its acquisition of software company entroCIM. The transaction was finalized for an initial sum of $30 million, with the potential for additional performance-based earnout payments. Details of the earnout and other terms of the deal remain undisclosed.
entroCIM, known for its innovative data center and building intelligence software, offers a browser-based Central Intelligence Manager (CIM) application as a service.
This platform facilitates the connection of devices and remote monitoring systems, providing valuable insights to enhance efficiency and reduce operational costs across various commercial facilities. Currently, entroCIM's technology oversees millions of square feet in diverse environments, including data centers, commercial buildings, airports, and universities.
The software's open API architecture and compatibility with established industry protocols enable it to serve as a central hub for different operating systems, promoting IT/OT convergence and improving operational transparency for data center and building applications.
John Engel, Chairman, President, and CEO of Wesco, expressed enthusiasm about the acquisition, stating that it reflects Wesco's commitment to delivering enhanced services and data-driven intelligence to its global customer base and suppliers.
Wesco International, a FORTUNE 500® company headquartered in Pittsburgh, Pennsylvania, boasts over $22 billion in annual sales. The company's comprehensive product and service offerings span electrical and electronic solutions, communications and security solutions, as well as utility and broadband solutions.
Wesco employs roughly 20,000 individuals, partners with leading suppliers, and caters to a wide range of customers worldwide. Operating nearly 800 branches in over 50 countries, Wesco aims to meet the needs of various commercial and industrial businesses, contractors, government agencies, educational institutions, telecommunications providers, and utilities.
This acquisition is part of Wesco's strategy to provide value through the supply chain by integrating cutting-edge technology and expertise. The information for this report is based on a press release statement.
InvestingPro Insights
In light of Wesco International's recent acquisition of entroCIM, the company's financial health and market performance are of particular interest to investors.
According to real-time data from InvestingPro, Wesco (NYSE: WCC) maintains a solid market capitalization of $8.77 billion, reflecting its significant presence in the industry. The company's P/E ratio stands at 13.97, with an adjusted P/E ratio for the last twelve months as of Q1 2024 at a slightly lower 13.06, suggesting that the company is potentially undervalued compared to its earnings.
Revenue streams have remained robust with $22.21 billion reported in the last twelve months as of Q1 2024, though it's worth noting a slight quarterly revenue decline of 3.11%. Despite this, Wesco's gross profit margin holds at a healthy 21.49%, indicating strong profitability relative to its revenue.
Investors should be aware of Wesco's position as a prominent player in the Trading Companies & Distributors industry, as highlighted by an InvestingPro Tip. This status is essential, considering the company's expansion into software services with the entroCIM acquisition.
Moreover, the company's stock price movements are known to be quite volatile, which is something for potential investors to consider. For those looking to delve deeper into Wesco's financials and future outlook, there are 6 additional InvestingPro Tips available, which can be accessed at https://www.investing.com/pro/WCC. Readers interested in an in-depth analysis can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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