IBM Credit Corporation Extends $300 Million Credit Line ot Hartford Computer Group
WHITE PLAINS, New York (March 23, 1998) – IBM Credit Corporation has signed an agreement with the Hartford Computer Group* in which IBM will extend a $300 million line of credit to the computer remarketer firm to fund its strategic growth plans.
The innovative credit line arrangement is designed to provide Hartford Computer with the financing for both its rapid growth and the ability to make acquisitions. The credit line consists of a $260 million asset-based revolving loan to fund purchases of equipment for resale, and a $40 million loan to fund the acquisition of other companies, or for Hartford Computer’s on-going working capital needs.
Hartford Computer, whose sales have been growing at an average rate of 50 percent per year for the last three years, considers the financing package critical to its growth in a rapidly consolidating industry. The Inverness, Ill.-based remarketer offers its customers a unique “Full Cycle Solution,” which distinguishes the company from its competitors by focusing on consulting, procurement, technology management services, trade-ins and flexible financing, including leasing and rentals targeted at Fortune 1000 companies.
“After looking at financing options from traditional banking and financial institutions, we selected IBM Credit Corp. because it was the only company which could work closely with us to create a highly-customized financial package,” said Anthony Graffia, Sr., chairman and CEO, Hartford Computer Group. “Furthermore, as a major player in the computer industry, IBM had a unique understanding of our situation and our technology needs. It was one-stop shopping for us.
“This package will be a tremendous asset to Hartford Computer over the next few years. The reseller market is an extremely competitive industry, and to succeed, we must grow by expansion,” added Graffia.
The package will also enable Hartford Computer, which employs a staff of 350, to purchase capital equipment and manage internal growth. In closing this transaction, IBM worked closely with the merchant banking firm Saunders, Karp and Megrue (SKM), which invested $32 million in the company.
“This deal is a reflection of IBM’s unique ability to understand the information technology marketplace and create innovative, customized solutions to meet specific customer needs,” said Stuart M. Schulman, general manager, global remarketer financing, IBM Credit. “It also speaks to our strong reputation as a financial institution, which allows us to meet the high standard of a merchant bank like SKM.”
Source: IBM