Xenos Group Acquires UK Document Solutions leader
Purchase of Geneva Digital is key element of Xenos' European distribution strategy
TORONTO, ON, and LONDON, UK, September 30, 1999 - Xenos Group Inc.(TSE: XNS), a leader in e-commerce document presentment software, today announced its expansion into Europe through the acquisition of Geneva Digital, one of the continent's most profitable suppliers of next generation e-document solutions and integration expertise. The transaction is scheduled to close on October 14, 1999 and involves a total purchase price of approximately Cdn $9,075,000, to be paid by Cdn $5.4 million in cash and 425,000 Xenos shares issued from treasury valued at Cdn $8.50 per share.
"Expansion into Europe is central to Xenos' growth strategy," said Stuart Butts, chairman and CEO of Xenos Group. "By acquiring this respected and profitable company, we are enhancing Xenos' European distribution network and making a substantial contribution to our revenue."
Based in London, Geneva Digital (www.geneva.co.uk) provides strategic document solutions for some of Europe's largest financial services, telecommunications and utilities companies. The nine-year-old company's fiscal 1998 revenues were Cdn$4.72 million with a pre-tax profit of Cdn $1.51 million. Geneva is currently on target to achieve its' fiscal 1999 revenue objective of Cdn $6.35 million with profits in the range of $1.8 million. Geneva Digital's clients include Royal & Sun Alliance, Egg Financial Services, Virgin Direct and MCI Worldcom.
"This is an exciting day for Geneva Digital and its clients and is synergistic with our direction" said Glenn Manchester, the company's managing director, who becomes group chief executive for European operations and a board member of Xenos Group. "We anticipate that Xenos' technologies will be in considerable demand as more and more European companies adopt e-commerce strategies incorporating electronic document presentment and EBPP (electronic bill presentment and payment)."
The transaction is subject to compliance with all applicable regulatory requirements including approval of the Stock Exchange.
About Xenos Group
Based in Toronto, ON, and Dallas, TX, Xenos Group (www.xenosgroup.com) is a leader in software for on-line statements and bills. Using the worlds most advanced transformation and presentment technology, Xenos gives companies the ability to convert any high-volume printed document into a personalized e-document. Customers such as Bear Stearns, Bank of New York, Merrill Lynch, Manulife Financial, Bell Canada and the Canada Post Electronic Post Office use Xenos Group software to transform and distribute more than one billion document pages every year.The company was listed on the Toronto Stock Exchange (symbol: XNS) on August 11th 1999.
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