Alpha Microsystems to Sell Managed Services Division

Alpha Microsystems in Santa Ana, which does business as AlphaServ.com, said Tuesday that it has signed a definitive agreement to sell its managed services division to a company headed by one of its directors in a transaction valued at $2.8 million to $3.2 million.

AlphaServ.com said in a press release that the deal with R.E. Mahmarian Enterprises LLC consists mainly of liabilities that Mahmarian Enterprises will assume.

AlphaServ.com will retain about $2.5 million of the division’s accounts receivables, which will be converted into cash two to three months after the sale is final. The sale is expected to close by the end of the month.

Richard E. Mahmarian, an AlphaServ.com director, owns Mahmarian Enterprises.

Under a five-year licensing agreement, Mahmarian Enterprises will be able to use the company’s AlphaConnect Internet technologies. AlphaServ.com provides multi-vendor and professional services to the information technology market.

The sale is subject to the approval of lenders and preferred shareholders, as well as the receipt of a favorable fairness opinion from an investment banking firm that AlphaServ.com hires.

The company expects to take a pretax fourth-quarter charge of $3.9 million to $6.6 million, or 34 cents a share to 57 cents a share. The company also plans to recognize other charges related to the transaction.

AlphaServ.com has previously said that it anticipates a revenue shortfall in the fourth quarter because of a delay in technology services and projects attributable to Y2K problems. But the company said the first quarter should show improvements as clients begin installation projects that have been on hold.

For last year’s first quarter ended March 31, AlphaServ.com lost $819,000, or 10 cents a share, on sales of $9.6 million.