Advantage Capital Development Corp. Portfolio Company to Double Current Revenue with Proposed Acquisition
MIAMI, Jan. 10 /PRNewswire/ --
MIAMI, Jan. 10 /PRNewswire-FirstCall/ -- Advantage Capital Development Corp. (OTC Pink Sheets: AVCP) announced today that one of its portfolio companies, Global IT Holdings Inc., has signed a letter of intent to acquire Global Information Technologies, Inc.
With the scheduled reopening of an Indianapolis, IN office, Global Information Technologies, Inc., a Tampa, Fla.-based IT staffing firm, will contribute revenues that should bring Global IT Holdings' annual run rate in excess of $10 million. That planned acquisition will include investments from Advantage Capital and another institutional fund, as well as asset-based financing.
In a similar transaction at the end of the third quarter of 2004, Global IT Holdings, Inc. completed a $3 million acquisition of the assets of Platinum IT Consulting and its associated company Parker Clark Data Processing. The two companies, which have served the New York and New Jersey markets for 25 years, have combined annual revenues in excess of $5 million.
Advantage Capital Development Corp. recently announced that it plans to distribute one-third of its share position of Global IT Holdings to its shareholders upon effectiveness of Global's registration statement. Advantage Capital will notify the NASD and its shareholders 10 days prior to this distribution once Global's registration statement has been declared effective by the SEC.
"Global Information Technologies is an excellent company with a solid client list and it will provide us with a strong presence in a key sunbelt market in one of the fastest growing regions in the country," said Lloyd Glick, president of Global IT Holdings, Inc. "We believe there is a great deal of synergy with this company and our current operations and along with the potential to double our revenues, we anticipate we will realize a significant increase in operating efficiencies. We are aggressively pursuing similar acquisitions, which can be accretive to our earnings."
Glick said that the acquisition of Global Information Technologies is subject to certain due diligence, however he anticipates it will close by the end of February.
"We believe this is another quality acquisition that fits well within Global IT Holdings' business model of selectively acquiring IT staffing companies," said Jeffrey Sternberg, president of Advantage Capital Development Corp. "We are very excited about the tactical approach Global's management is taking to become a significant player in the burgeoning IT staffing industry."
Advantage Capital recently announced that it has participated in a $600,000 investment in Networth Technologies, formerly known as Colmena Corp. (BULLETIN BOARD: CLME) , a global management consulting, technology services and acquisition company. |
