ePlus Acquires Daymark Solutions to Expand Microsoft Services Despite Margin Pressure
On August 21, ePlus completed its acquisition of Massachusetts-based IT services provider Daymark Solutions. The deal is expected to strengthen ePlus' position in cloud and cybersecurity solutions within the Microsoft ecosystem, particularly with Azure and Microsoft 365 offerings. The timing aligns with a period where managed services revenue at ePlus grew by 15.1% year-over-year to $51.3 million during Q1 fiscal 2027. However, this growth was not reflected in profitability as net earnings fell and gross margins declined across all business segments. Despite the margin pressures, ePlus reported strong cash reserves of $448.9 million at June 30, supporting further acquisitions or shareholder returns. The company remains optimistic about a stronger second half driven by record sales and increased orders.
