New York, NY–Manchester Technologies and Caxton-Iseman Capital have inked an agreement under which investment vehicles associated with Caxton-Iseman will acquire Manchester and Electrograph Systems, its subsidiary.
Following completion of the transaction, the company will operate as a private enterprise under the name Electrograph Systems. Alan Marc Smith, the former president and chief executive officer of Westcon Group, a value-added distributor of networking and communications equipment, will invest alongside Caxton-Iseman in the transaction and become chief executive officer of Electrograph. Sam Taylor, president of Electrograph, will remain in his position and will also invest in the transaction.
Robert A. Ferris, a managing director of Caxton-Iseman, said, “Electrograph is an ideal platform from which to capitalize on the dramatic growth in the market for plasma and LCD display solutions for professional, commercial and high-end consumer users. As the market for these products expands in the coming years, we believe that manufacturers will come to rely more heavily on value-added distributors that have a unique ability to reach the market’s integrators, resellers, and their end customers.”
According to Sam Taylor, “This transaction with Caxton-Iseman is a positive development for Electrograph, and our vendors, customers and employees. Under new ownership we will continue our tradition of value-added distribution for our customers. Electrograph will offer the best selection of large format displays and associated peripherals as well as the highest level of service and support in our industry. Concurrently, we will actively pursue new ways to add value for our business partners.”
Completion of the transaction is expected to occur in the third quarter of calendar year 2005.