PCM Agrees to Sell Real Estate For $20.2 Million, Potential For $15M Book Gain

PCM, Inc.

, a leading technology solutions provider, announced that on August 6, 2014, one of its wholly-owned subsidiaries entered into an agreement with The Regents of the University of California to sell certain real property to them for a total cash sales price of $20.2 million. The real property is located in Santa Monica, California and includes two parcels. The first parcel is approximately 32,500 square feet of land together with a building of approximately 9,750 square feet. The building is currently being used by our subsidiary as a technology products retail store. The second parcel is adjacent to the first, and is approximately 5,000 square feet of land together with a building of approximately 3,297 square feet. The agreement currently contemplates a closing of the purchase and sale transaction in the fourth quarter of 2014 and will result in a book gain of over $15 million. We intend to pursue a tax deferred exchange under Section 1031 of the Internal Revenue Code of 1986 through one or more purchases of real property to be used in connection with our company's business and operations. We are evaluating potential properties to identify for such an exchange, but would expect that any exchange we make will benefit us through direct ownership of strategic facilities, through reductions in our lease obligations or through other ancillary benefits. In conjunction with the sale of the properties, we intend to shut down the operations of the retail store, and combined with the announced shutdowns of our three other retail stores, will help us to optimize the operations of our MacMall segment by allowing us to increase our focus on this segment's remaining web and outbound business-to-business components. For more details about this transaction, please see our Form 8-K filed with the Securities and Exchange Commission earlier today.