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General Electric Augments ASI's Liquidity - Analyst Blog

Posted: 3/14/2013 12:13:00 PM
Referenced Stocks: CMHHY;GE;JSHLY;KKPNF

GE Capital, an operating unit of General Electric Company ( GE ), recently closed an inventory and working capital financing credit facility worth $40 million for ASI System Integration, Inc. The debt financing will be executed by the Commercial Distribution Finance business of GE Capital. The transaction will likely enhance the liquidity of ASI System and facilitate the working capital requirements to fuel further growth.

With over three decades of industry experience, ASI System is a premier independent provider of IT (information technology) services and solutions for diverse industries in North America. The company offers a plethora of IT services such as consulting, systems design, integration, lifecycle sourcing, asset sale, and IT workforce staffing.

ASI System leverages its experience and industry-best practices to help companies plan, design, implement, and support a fully optimized data center for performance at peak service levels. In order to drive further growth, ASI System seeks to grow both organically and inorganically through acquisitions of companies that complement its product offerings. The debt financing by General Electric is expected to go a long way on this initiative. At the same time, the inventory and working capital financing will enable ASI System to address the cash conversion cycle to further develop its business.

General Electric is one of the largest and the most diversified technology and financial services corporations in the world, competing with industry bigwigs such as Koninklijke KPN N.V. ( KKPNF ) and Jardine Strategic Holdings Ltd. ( JSHLY ), each carrying a Zacks Rank #1 (Strong Buy), and China Merchants Holdings (International) Company Limited ( CMHHY ) that carries a Zacks Rank #2 (Buy). With products and services ranging from aircraft engines, power generation, water processing, and security technology to medical imaging, business and consumer financing, media content and industrial products, it serves customers in more than 100 countries across the world.

Its segments include Power & Water, Oil & Gas, Energy Management, Aviation, Healthcare, Transportation, Home & Business Solutions, and GE Capital. With more than 30 years of experience serving the IT industry, GE Capital, Commercial Distribution Finance possesses an in-depth industry know-how and expertise. General Electric currently has a Zacks Rank #3 (Hold).


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