4Front Technologies, Inc. Completes Acquisition of CVSI, Inc.
Acquisition Enhances 4Front's Strong Position In European IT Services Market
LONDON--(BUSINESS WIRE)--Nov. 3, 1999-- Service Revenues Now Over $260 Million; Annualized Revenues
Approach $350 Million
4Front Technologies, Inc. (''4Front'') (Nasdaq NM/EASDAQ Symbol: FFTI) today announced that it has completed the acquisition of CVSI, Inc. (''CVSI''), a leading provider of IT services on a worldwide basis. 4Front acquired CVSI for aggregate cash consideration of $25.5 million, including the discharge of debt. 4Front's agreement to acquire CVSI was announced on September 22, 1999.
With principal operating locations in the UK, France, Germany, Italy, Holland, Sweden, the United States and Japan, CVSI delivers enterprise-wide hardware and software support services, systems integration and consulting services, as well as a full suite of network services to a wide range of blue-chip customers around the world. CVSI has particular strength in the provision of services to the mid-range computer market and maintains strategic partnerships with several of the world's leading information technology providers, including Sun Microsystems.
With the completion of the CVSI acquisition, 4Front now has total annualized revenues approaching $350 million, with over $260 million, or 75 per cent, coming from service revenues. 4Front now has over 2,000 employees, including 1,400 highly skilled technical staff.
Anil Doshi, Chairman and CEO of 4Front, said, ''The CVSI acquisition is another important step for 4Front in its progress towards establishing itself as one of the leading pan-European IT service providers. With CVSI, 4Front has strengthened its position in a number of key European markets and now has operating locations in European countries that account for over 90 per cent of the European IT service market. In addition, CVSI's locations in North America and the Far East increase our exposure to worldwide IT industry trends and expand the available service areas for our existing customers.''
Mr Doshi continued, ''CVSI's wide range of high-end services assists 4Front's progression up the computer services value chain and enhances 4Front's already strong services offering to what will now be a substantially enlarged international blue-chip customer base. I am pleased to report that the total annualized revenues and service/product ratio targets of $250 million and 75/25, respectively, set last year for achievement by the end of next year, have both been achieved significantly ahead of schedule.''
About 4Front Technologies, Inc.
4Front Technologies, Inc., is a leading provider of information technology and outsourcing solutions, which consist of specialized computer services and complementary products, primarily to blue-chip corporations throughout Europe. 4Front's services and solutions include help-desk support, education services, product-related services, network services, systems integration, specialized software services and products and the supply of high-end storage systems. 4Front's customers include British Petroleum, British Telecom, Telecom Italia, Computer Sciences Corp., IBM, Phillips, Nokia, Siemens, Sony, Cegedim, Renault, Energis, Pfizer, Cariplo, Societe Generale and the UK Ministry of Defence. Additional information on 4Front can be found on the Company's website at 4fti.com.
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Contact:
Abernathy MacGregor Frank
Investor Relations:
(U.S. Investor Relations)
Jason Thompson
212/371-5999
or
Shandwick International
(U.K. Investor Relations)
David Hothersall or Buster Cheetham
011-44-171-329-0096
or
4Front Technologies, Inc.
Mark Ellis or Ken Newell
011-44-171-269-5848 |
