Tuesday October 5, 9:15 am Eastern Time
Company Press Release
SOURCE: Planet City Corp.
Planet City to Acquire Software and Services Firm
SEDONA, Ariz., Oct. 5 /PRNewswire/ -- Planet City Corp. (OTC Bulletin Board: PINC - news) has signed a Letter Of Intent to acquire privately owned Topology Systems, Inc.(TSI).
TSI, headquartered in Chicago, Illinois, provides software products and services that enable organizations to improve the productivity, quality, and effectiveness of their IT systems maintenance and software evolution functions. TSI markets their products and services through its relationships with leading value added integrators and distributors, including Science Applications International Corp (SAIC), PRC/Litton Industries (NYSE: LIT - news), Telcordia Technologies (formerly Bellcore), DynCorp, CTA Inc., Hitachi Data Systems, Computer Sciences Corp (CSC), IBM Global Services of Japan, and Millennium Software, Inc.
TSI's primary market channel is through Responsible Conversion Services, Inc. (RCS) of New York and their alliance with SAIC, a Fortune 500 company with over $5 billion in revenue. SAIC is the largest employee-owned research and engineering firm in the nation, and combined with its subsidiaries have more than 38,000 employees with offices in over 150 cities worldwide. TSI private-labeled a version of their software tools for SAIC to market to their extensive network of government and commercial clients.
Antonio (Tony) Burketh founded TSI in 1997 and has served as its Chairman and CEO. Prior to founding TSI, Mr. Burketh held the position of Management Consultant for Price Waterhouse Coopers (formerly Coopers & Lybrand and Price Waterhouse). Mr. Burketh has a successful history of distributing software for companies like IBM, Platinum Technology, Legent, and Sterling Software on a direct OEM basis to the Federal Government. TSI will merge into Planet City Corp's wholly owned subsidiary, Planet City Software, as a separate operating division, with Mr. Burketh as the Division Manager.
Terry Dennis, President & CEO of Planet City, stated, ''We're excited to have the Topology management and staff join our team. Our merged resources provide additional opportunities for our combined companies to offer existing clients and future prospects a comprehensive suite of software products and services. Our internal staffs cooperating with various external alliances give us the depth of experience and breadth of offerings of companies many times our size, yet without the corporate overhead our larger competitors must support. This creates a situation where we can be highly competitive with our rate structure, while maintaining superior operating margins. Planet City's primary market has been mid to large sized commercial accounts, while Topology's strength is large government contracts. Our two companies are highly complementary.''
Planet City will be acquiring all of TSI's assets, including staff, licensing agreements, third party alliances, existing and proposed projects, Accounts Receivable exceeding $300,000 from recently completed projects, and certain other financial agreements currently under non-disclosure. The acquisition is contingent upon TSI's fulfillment of requirements listed in the Letter of Intent. It will be immediately accretive to Planet City's earnings for fiscal year 1999, ending 12/31/99. The companies have already begun pursuing sales opportunities as a combined team.
Chairman and CEO of Topology, Tony Burketh, said, ''Planet City provides Topology with the necessary framework to fuel our growth and develop tangible solutions for delivery to the marketplace. We will maximize this opportunity to provide our current and future customers innovative technology solutions that meet specific business objectives.''
Ples Bruce, President of Topology, added, ''Our new division and staff will augment Planet City's existing operations. We have total faith and confidence in Terry Dennis' ability to fulfill his long term vision for Planet City. Our united company will become a leader in Enterprise Resource Planning (ERP), E-Commerce, Internet markets, and other emerging technologies.''
For further information call: 1-800-219-8785
The Private Securities Litigation Reform Act of 1995 provides a ''Safe Harbor'' for forward-looking statements. Certain of the statements contained herein which are not historical facts are forward-looking statements with respect to events, the occurrence of which involve risks and uncertainties. These forward-looking statements may be impacted, either positively or negatively, by various factors. Information concerning potential factors that could affect the company is detailed from time to time in the company's reports filed with the Securities and Exchange Commission.
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