The transaction is subject to customary closing conditions, and is anticipated to close on June 30, 2014.
Pat Waid, President and Chief Operating Officer of Hartco, said, "The sale of Hartco's franchising segment is a result of the strategic review process that we announced earlier this year and we are delighted that the MicroAge franchise network will have the opportunity to prosper under new ownership.
The sale of our franchising segment increases our focus on successfully operating our commercial segment and we will continue to adapt our business model in response to emerging market trends. We are confident that the transition of our MicroAge franchise network to TMN Systems Inc. will happen smoothly."
Brad Hoffman, General Manager of TMN Systems Inc., added, "The MicroAge franchise network is an attractive business with great potential and we believe that it will thrive in the future. With more than thirty five locations across Canada, the MicroAge network is a national network of independently owned IT solution providers with longstanding customer relationships based on an unrelenting commitment to service excellence."
Hartco plans to use the net proceeds of this transaction to increase its financial flexibility. The Company will continue to review strategic options with the goal of maximizing shareholder value.
