NEWS -- NEWS -- NEWS
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Micro Tempus Becomes a Global E-Commerce Transaction Processor -
Acquires Key Strategic Alliance with BCE Emergis Inc.
Montreal, Quebec--
Micro Tempus Inc. (MTP-ME) announced today that it has entered
into letters of intent to acquire two significant e-commerce
business units and a strategic alliance with BCE Emergis Inc. In
addition, the Company has signed an engagement letter in
connection with a proposed five million dollar ($5,000,000)
equity financing.
The first letter of intent is to acquire BCE Emergis' online
transaction processing business that services major Sports and
Entertainment companies, including a number of official Major
League Baseball team Web sites. The Sports and Entertainment
division currently processes approximately one hundred and
seventy-five thousand (175,000) transactions per month,
representing approximately nineteen million five hundred thousand
dollars ($19,500,000) in transaction value. Micro Tempus will
receive a fee for each transaction processed, which is expected
to generate over twelve million dollars ($12,000,000) in
annualized revenue.
The second letter of intent involves the acquisition of a company
owned by Mr. Rory Olson and Mr. Joel Leonoff, the former
Executive Vice President of Business Development of BCE Emergis
and the former Senior Vice President of BCE Emergis responsible
for its Sports and Entertainment division, respectively. This
company offers development and implementation of front-end online
financial services solutions for financial institutions. This
company has also entered into a strategic alliance with BCE
Emergis which will provide Micro Tempus with access to BCE
Emergis' e-commerce services such as merchant-enabling solutions,
catalogue development and transaction processing.
In addressing the online solution for financial institutions, Mr.
Olson said, "We are very excited about the momentum that has been
created regarding the development of an online financial services
solution to assist institutions in expanding their suite of
services. Our company is already in discussions with an
interested third party for the development of a prototype. We are
combining our expertise in the development of Internet-related
transaction processing with Micro Tempus' technical expertise to
participate in the creation of this new paradigm."
The Company expects to receive a fairness opinion and the
requisite regulatory approvals in order to be able to present
these transactions to its shareholders for their approval at its
upcoming annual meeting anticipated to take place in November
1999. Upon receipt of approval by its shareholders, Micro Tempus
will issue a total of 30.3 million common shares as consideration
for these transactions, 6 million of which will be issued to BCE
Emergis.
As regards the transaction processing business, Mr. Olson said,
"based on our current run rate, we expect to process transactions
this year representing a retail value in excess of two hundred
million dollars ($200,000,000).
These transactions set a new phase in the Company's evolution and
pursuant to the letters of intent, the Company will introduce a
new senior management team. Effective with their closing, Mr.
Richard J. Renaud, currently a director, will replace Mr. Brahm
Gelfand as Chairman of the Board. Mr. Rory Olson will become the
Company's President and Chief Executive Officer, replacing Mr.
Andre Levesque who will assume the position of Chief Technology
Officer. Mr. Joel Leonoff will become Executive Vice President
and Chief Operating Officer of the Company, replacing Mr. Mark
Krakower who will assume the new position of Senior Vice
President of Corporate Affairs, while remaining the Company's
interim Chief Financial Officer.
Following these transactions and the proposed financing, the
Company will have approximately $7,000,000 of cash on hand with
no debt. Mr. Olson expressed his intention in the short term to
actively seek out acquisitions which would complement the
Company's new direction.
Mr. Olson, formerly Executive Vice President of Business
Development for BCE Emergis, was a co-founder of TotalNet, one of
Canada's first and largest Internet Service Providers (ISP).
Under his direction, BCE Emergis concluded several strategic
acquisitions as well as a number of key alliances with Fortune
500 companies.
Mr. Leonoff, formerly a Senior Vice President of BCE Emergis, was
also a co-founder of TotalNet and is founder of the Sports and
Entertainment division which is being acquired by Micro Tempus.
Mr. Leonoff is a chartered accountant, and has been the driving
force behind several successful business ventures.
"We are excited and confident about the opportunity to expand
Micro Tempus' business into a variety of new vertical markets,
applications and revenue streams and maintaining and increasing
the Company's status as a global player in online transaction
processing," said Mr. Olson.
"Rory and Joel bring an incredible energy and unrivaled track
record to Micro Tempus. The expertise that they and the new
senior management team bring to the table will allow the Company
to achieve its goals of expanding into new markets and product
lines, thus realizing new revenue streams and enhancing its
existing product base. We are all very excited about this
opportunity," commented Brahm Gelfand, outgoing Chairman.
Notwithstanding the proposed acquisition, the Company remains
committed to its existing product lines, clients and service
obligations and continues to pursue licensing and partnership
agreements for its products.
In addition, the Company continues to work actively with several
companies regarding licensing, distribution and joint venture
activities relating to its current technologies, as well as
pursuing new applications and synergies for those core
technologies.
Micro Tempus Inc. develops and markets software that facilitates
network communications and promotes cross-platform connectivity.
Founded in 1982, the Company has over 2000 customers worldwide
covering every major industry sector. Approximately 95 percent of
its customers are in the United States, Europe and South America.
This news release contains certain forward-looking statements
that reflect the current views and/or expectations of Micro
Tempus Inc. with respect to its performance, business and future
events. Such statements are subject to a number of risks,
uncertainties and assumptions. Actual results and events may vary
significantly.
For further information, please contact:
Mark Krakower
Chief Operating Officer and Chief Financial Officer
(514) 848-0803
E-Mail: krakowerm@microtempus.com |
