ePlus Inc. (NASDAQ: PLUS) is making a bold move, and investors should pay close attention. The company just announced it’s selling off its U.S. financing business to PEAC Solutions, a portfolio company of HPS Investment Partners, in a deal that positions ePlus as a pure-play tech solutions provider.
ePlus is ditching legacy financial services to go all-in on AI, cybersecurity, cloud, networking, and data center modernization, some of the hottest sectors in tech right now.
CEO Mark Marron made it clear: this isn’t a retreat, but a reallocation. The deal brings in fresh capital, giving ePlus the flexibility to ramp up organic and M&A growth, expand its market footprint, and deepen value-added service offerings. And yes, they’re still keeping a foot in the financing world, continuing to offer financial solutions to tech clients via their new partner PEAC.
Because ePlus is now laser-focused on high-margin, future-forward business segments. The shift strips away the slower-moving financing division and makes room for more agile, tech-driven growth. This means potential upside in revenue mix, operating leverage, and long-term valuation multiples.
PEAC Solutions isn’t a nobody either. As a global asset finance platform with a proven record across North America and Europe, they’re more than capable of absorbing the financing unit without disrupting customer relationships.
Financially, ePlus has been holding its own. In the most recent quarter, it pulled in $574.6 million in net sales, up 9.4% year-over-year, not too shabby. Profits came in at $22.8 million, and the 23.7% gross margin shows they’re not just growing, they’re doing it efficiently. With the financing unit off the books soon, expect a leaner, more focused ePlus going forward.
Closing is expected within 60 days, pending standard regulatory approvals. Represented by Macquarie Capital and K&L Gates, ePlus clearly treated this like a strategic pivot, and not a cash grab.
ePlus is betting big on the future of tech, and they’ve just freed up the cash to back that bet.
