Acquisition of Next Generation Solutions Inc.
Burnt Sand Solutions Inc. Announces the Acquisition of
Next Generation Solutions Inc. Creating Industry Leadership in
Electronic Customer Relationship Management, e-CRM
VANCOUVER, BC, July 19, 1999 - Burnt Sand Solutions Inc. (TSE: BRT) ("Burnt
Sand") is pleased to announce that it has reached an agreement to acquire
all of the issued and outstanding securities of Next Generation Solutions
Inc. ("Next Generation"), a private Toronto, Ontario based company
specializing in Help Desk, Call Centre and e-CRM solutions integration.
Under the terms of the agreement, Burnt Sand will pay, on closing,
$2,365,000 cash to acquire all outstanding debentures of Next Generation
plus all accrued and unpaid interest on those debentures. Burnt Sand will
also acquire all of the outstanding common shares of Next Generation by
paying $1,500,000 cash and by issuing on closing a number of Burnt Sand
Common Shares (the "Burnt Sand Shares"), equal to $4,200,000 divided by the
ten day average closing price (the "Closing Price") of the Burnt Sand Shares
prior to the closing date. The Closing Price will be subject to a minimum
price of $1.50 per share and a maximum price of $2.00 per share. As a
consequence, Burnt Sand will issue a minimum of 2,100,000 common shares and
a maximum of 2,800,000 common shares.
The transaction is subject to a number of conditions of closing including:
regulatory approval, satisfactory due diligence, the key officers of Next
Generation entering into employment agreements and the parties signing a
definitive purchase agreement. The transaction is expected to close during
the month of July 1999, subject to the satisfaction of all conditions.
For the three-month period ending March 31st, 1999, Next Generation had
revenues of $2.6 million and Net Income from Operations before Interest,
Depreciation and Amortization of $300,000. Next Generation had approximately
55 employees and contractors at the end of this period, located principally
in Toronto with branch offices in Montreal, Calgary and Vancouver.
"The association with Burnt Sand is very exciting for our future," said
Markus Luft, President & CEO of Next Generation Solutions. "The technical
and geographic synergies, plus the shared vision, make this an ideal fit.
Burnt Sand's financial strength, critical mass and expertise within the
e-Solutions market, coupled with the e-CRM leadership of Next Generation,
creates a powerful Canadian company, with North American reach, representing
great value added to our clients."
"The acquisition of Next Generation propels Burnt Sand into a North American
leadership position in e-CRM," stated Jim Yeates, Burnt Sand's Chairman and
CEO. "Industry analysts agree the effective electronic management of
customerrelationships, and commercial activity is critical for growing,
global organizations. The combination of Next Generation and Burnt Sand
skills creates a capability that goes beyond current Data, Voice, & Internet
convergence. It creates a unique design and integration capability, for
advanced, global e-Solutions. Step back and view this new capability in the
light of Burnt Sand's established e-Solutions expertise. When Security,
e-Trade, Business Intelligence/Data Warehousing, Knowledge Management and
e-Commerce are added, you see the power of the e-Solutions Integration
capability Burnt Sand has created, in a very short timeframe. This
represents measurable value and advantage for our customers, and therefore
for our employees, and shareholders."
About Next Generation Solutions Inc.
Next Generation was founded to provide help desk and call center solutions
for the growing customer relationship management marketplace. With its head
office in Toronto and sales offices across Canada, Next Generation provides
services to in excess of 350 Financial Post 500 companies. Next Generation
provides the integration of e-CRM products from such partners as Bendata and
Remedy Software, through the delivery of professional services by certified
consultants, professional training and education, and on-going client
support through its help desk offering. Having grown to in excess of 55
professionals, Next Generation has developed a strong reputation as a
premier provider of e-CRM solutions. In a recent article in computer dealer
news, Tony Olvet, research manager from International Datacorp limited
predicted, "Next Generation will see tremendous growth over the next few
years, largely due to its market focus, and emphasis on service quality and
support delivery."
About Burnt Sand Solutions Inc.
Without the application of human intellect and creativity, current
e-Commerce technology is only burnt sand. Burnt Sand architects success into
Business to Business ("B2B") e-Solutions. Burnt Sand's solutions encompass
strategy, implementation and support, with time to market measured in weeks,
not years! Six Canadian and one US location, coupled with enviable growth,
has made Burnt Sand a success story. Burnt Sand's success is derived solely
from successful clients, and our ability to make major e-Solutions impact in
the areas of energy & commodity e-Trade, e-Customer Relationship Management,
e-Security, e-Business Intelligence and e-Commerce. Burnt Sand's e-Solutions
deliver competitive advantage, and are based on the Burnt Sand B2B
e-Cosystem( Foundation. The Burnt Sand e-Cosystem( fuses Burnt Sand's
corporate alliances, knowledge base, proven methodologies, and world class
craftsmanship into a powerful e-Solutions integration asset. To learn more
about Burnt Sand, visit us on the Toronto Stock Exchange, TSE-BRT, or at
www.burntsand.com.
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