Zmax Corp. Announces Consummation of the Acquisition of Eclipse Information Systems Inc.
GERMANTOWN, Md.--(BUSINESS WIRE)--Dec. 18, 1998--ZMAX CORP. (NASDAQ SMALL CAP:ZMAX - news) Friday announced the consummation on Dec. 14, 1998 of its acquisition of Eclipse Information Systems Inc., a privately owned computer consulting and re-engineering corporation headquartered in Chicago.
The purchase price paid by ZMAX included the issuance of 1,700,000 shares of ZMAX common stock and the payment of $1,450,000, subject to post-closing adjustments, to the shareholders of Eclipse.
ZMAX will hold a telephone conference call on Tuesday Dec. 22, 1998 at 2:00 p.m. (EST) to address this material acquisition. The call-in phone number is 800/621-5169. Any questions to be addressed during this call must either be faxed to ZMAX at 301/353-9501 or emailed to ZMAX at jmccubbin@csi-md.com no later than 1:00 p.m. on Monday, Dec. 21, 1998.
Michael C. Higgins, president and CEO of ZMAX, stated, ''We expect the acquisition of Eclipse to significantly accelerate ZMAX's growth and expand its computer consulting and system re-engineering products and services. The management team at Eclipse has been extremely successful and profitable.
The synergies that are expected to be realized as a result of our companies' creative and highly efficient employees, complementary customer bases in the U.S. and abroad, and methodologies and tools should significantly benefit ZMAX as it enhances its position as an international information technology (IT) consulting and re-engineering company.''
James T. McCubbin, vice president and CFO of ZMAX, added, ''The acquisition of Eclipse is expected in 1999 to materially contribute to future revenue growth and acretive earnings for ZMAX.''
Eclipse, which has experienced annual revenue growth in excess of 60 percent during the past 3 years, and is expected to have revenues of approximately $8,500,000 in 1998, will operate as a wholly owned subsidiary of ZMAX. Eclipse's domestic and internationally based clientele has repeatedly used the company's highly regarded consultants on a number of projects throughout the U.S. and England.
The expertise of the consultants at Eclipse spans six practice areas that include an enterprise resource planning (ERP) practice, an internet practice, a data solutions practice, a client server practice, a communications/networking practice, and an AS400 practice.
ZMAX Corp. is an IT consulting and re-engineering company focusing on system re-engineering and IT consulting services, including Y2K analysis and remediation, system testing, project management, independent verification and validation of IT systems and processes, as well as other diversified IT related services.
Statements made in this press release that are not historical or current facts are ''forward looking statements'' made pursuant to the safe harbor provisions of federal securities laws.
Forward looking statements represent management's best judgment as to what may occur in the future, but are subject to certain risk and uncertainties that could cause actual results and events to differ materially from those presently anticipated or projected.
Such factors include adverse economic conditions, entry of new and stronger competitors, inadequate capital, unexpected costs, and failure to capitalize upon access of new clientele.
Specific risks and uncertainties which may affect forward looking statements about the business and prospects include the possibility that a competitor will develop a more comprehensive or less expensive service or solution to the Company's services or products and delays in the market awareness of ZMAX and its product and service solutions.
These factors and others are discussed in the ''Management Discussion and Analysis'' section of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1997, to which reference should be made.
ZMAX CORP. is quoted on the NASDAQ Small Cap exchange under the symbol of ''ZMAX'' and on the Frankfurt and Berlin Stock Exchanges under the symbol of ''ZMX''
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Contact:
ZMAX CORP.
Investor Communications Co.
800/416-0811 or 800/547-0443
www.zmax.com
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