FutureLink Announces Definitive Agreement to Acquire Leading Citrix Integrator
- VSI Technology Solutions;
Business Editors
IRVINE, Calif.--(BUSINESS WIRE)--Dec. 3, 1999--
Acquisition To Expand FutureLink's Application Hosting
Platform Market Presence
FutureLink Corp. (OTC: FLNK), the leading Application Service
Provider (ASP) with the largest installed base of application hosting
platforms, today announced that it has signed a definitive agreement
to acquire Maryland-based VSI Technology Solutions ("VSI"), a leading
provider of Application Hosting Platform solutions, for a total value
of $26.5 million.
Under the terms of the agreement, VSI's shareholders will receive
$7.0 million in cash and $19.5 million in FutureLink stock. The
transaction is expected to close by January 31, 2000.
VSI, a leading mid-Atlantic region Citrix Solutions Provider,
provides medium to large businesses with solutions for rapid
application deployment of business critical applications and solutions
to reduce the total cost of hardware ownership. VSI's application
hosting platform solutions are based on Microsoft Windows NT, Terminal
Server Edition, and Citrix MetaFrame application hosting platform
solutions. The firm currently employs a technical and professional
staff of over 75. For the nine months ended September 30, 1999, VSI
had revenues of $9.3 million, representing a 45% increase over the
same period in 1998.
"VSI's technical expertise will contribute greatly to our core
competencies as we continue to build the infrastructure necessary to
assemble a world class application hosting platforms organization,"
said Philip R. Ladouceur, CEO and Executive Chairman of FutureLink.
"The acquisition also gives FutureLink a significant presence in the
mid-Atlantic region, complementing our existing presence in the
Southeast."
"VSI recognizes the tremendous potential that is unlocked by
being a part of FutureLink," said Curtis Eshelman, President of VSI
and Chris Harvey, Vice-President. "We have seen the potential of
Application Hosting Platform solutions and are ready to embrace
Application Hosting Services as a solution for our rapidly expanding
customer base. As a leader in the mid-Atlantic region, the vision VSI
brings to Futurelink will catalyze the growth of the Application
Hosting Services model."
On a pro forma basis, including the acquisitions of MicroVisions,
CNI, the recently-completed acquisition of Async Technologies, the
recently announced definitive agreement for the acquisition of KNS
Distribution of the UK, and VSI, FutureLink's revenues for the nine
months ended September 30, 1999 would have been in excess of $58
million.
About VSI Technology Solutions
Founded in l989 and based in Beltsville, Maryland, VSI is a
leading Citrix reseller and integrator in the mid-Atlantic region with
over 75 employees and unaudited l998 revenues of $9.7 million. VSI was
among North America's top 5 largest Citrix integrators in l998 and was
one of the top 10 Citrix resellers in l997. In addition to its
Beltsville headquarters, the company has offices throughout Virginia
and conducts business across the entire East Coast.
About FutureLink
FutureLink, The Computer Utility Company(TM) is a founder of the
Application Service Provider (ASP) industry and a founding member of
the ASP Industry Consortium. The company has one of the largest
installed bases of application hosting platforms with thousands of
customers worldwide.
FutureLink's Application Hosting Services Division provides
businesses with off-site, Internet-based computing, allowing
subscribers to escape costly hardware/software upgrade cycles,
precisely control total cost of technology ownership and focus on
their core businesses. The division offers customers an all-inclusive,
trouble-free ASP service at a predictable price and provides computing
service as transparently and reliably as today's utilities deliver
electricity, water and telephone service.
The company's Application Hosting Platforms Division builds
application server farms and provides Citrix application server
software integration services. With Application Hosting Platform
solutions, FutureLink customers manage their own server farms, and
provide ASP services to users with their own IT staff and FutureLink
consultants.
For more information, contact FutureLink toll-free at (877)
216-6001; e-mail: sales@futurelink.net; or visit the FutureLink Web
site at futurelink.net.
Forward-looking statements and comments in this news release are
made pursuant to safe harbor provisions of the Securities Exchange Act
of 1934. Such statements relating to, among other things, the
prospects for the companies to complete the transaction and enhance
operating results, are necessarily subject to risks and uncertainties,
some of which are significant in scope and nature. These risks may be
further discussed in periodic reports and registration statements to
be filed by the company from time to time with the Securities and
Exchange Commission in the future.
--30--bk/ny*
CONTACT: FutureLink
Troy Cleland
Investor Relations
877/216-6001
invrel@futurelink.net
or
Lippert/Heilshorn
Jody Burfening/Sanjay Hurry
212/838-3777
jody@lhai.com/Sanjay@lhai.com
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS MERGERS/ACQ
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