(COMTEX) B: Crystal to Acquire Controlling Interest in Mainsoft
B: Crystal to Acquire Controlling Interest in Mainsoft
HERZLIYA, Israel, Dec 13, 1999 (BUSINESS WIRE) --
This acquisition significantly increases Crystal's presence in
Windows NT(R), Unix and LINUX markets
Crystal Systems Solutions Ltd., (NASDAQ: CRYS) a leading provider of
software renovation solutions, today announced the signing of an
agreement to acquire a controlling interest in privately-held Mainsoft
Corporation of San Jose, California. Under terms of the agreement,
Crystal will invest up to $22.5 million in Mainsoft, with an initial
consideration of $10 million in cash. Total consideration for this
acquisition may increase upon the fulfillment of certain terms and
conditions.
Mainsoft develops and markets a Windows(R) platform for UNIX and LINUX,
allowing Windows applications to run natively on UNIX and LINUX
systems. Mainsoft enables independent software vendors and enterprise
customers to leverage their investment in applications developed for
Windows through the generation of native UNIX and LINUX applications.
Using Mainsofts Windows platform for UNIX, overall development costs
are dramatically reduced and time to market is significantly improved.
By agreement with Microsoft, Mainsoft has access to Windows NT(R) and
Windows 2000(R) source code.
Mainsoft targets its products to corporate enterprises and Independent
Software Vendors (ISV's). Mainsoft's customers include Fortune 500
enterprises as well as major software vendors including Microsoft
Corporation, which ported Internet Explorer to UNIX using Mainsoft
technology. Other customers include Computer Associates International,
Rational Software Corporation, Cadence Design Systems and Bridge
Information Technologies Inc.
Crystal's enterprise renovation solutions include platform and data
base migration, IT department mergers and language upgrades. Crystal
software renovation solutions are all based upon its proprietary
software tools and technologies. This agreement will enable Crystal to
address customer needs across a wide range of computing platforms, from
mainframe through midrange, and work stations. On those platforms the
solutions will include operating systems such as MVS, VSE, VMS, UNIX,
LINUX and Windows NT.
"With this acquisition Crystal takes a great step toward positioning
itself as a specialized cross platform software solutions provider. Our
extended capability with multiplatform conversion and migration
technologies will address the existing needs of our current and future
customers," said Gad Goldstein, Crystal chairman of the board. "As
previously announced, Crystal decided to incur additional expenses in
order to achieve its new positioning as a leading technology provider.
This strategy is currently implemented at both Crystal and Mainsoft,
who in the near future plan to incur the required costs to exploit the
benefits from the promising opportunities in the market.
These costs include Mainsoft's current restructuring expenses as well
as Crystal's management attention and related resources. This
acquisition may be dilutive to our earnings in the next few quarters,
however, I highly regard the potential of the additional strength of
Mainsoft's technologies to Crystal and on the long run we will all
benefit from the wide technological span opened due to this
transaction."
"I am excited about joining forces with Crystal because I feel that it
is not only an excellent fit, it is a synergy in which the result will
be far greater than the sum of its parts," said Yaacov Cohen, President
of Mainsoft. "By leveraging Crystal's Fortune 1000 customer base,
Mainsoft will extend the adoption of its Windows platform for UNIX to
the worldwide corporate IT marketplace. In addition I am proud to join
a Formula Group company. I trust that its management support and its
sound financial backing will enable us to better exploit our
outstanding market potential."
About Crystal Systems Solutions
Established in 1987, Crystal Systems Solutions Ltd. (NASDAQ: CRYS)
provides software renovation solutions, based on its proprietary
technology, for complex conversion and migration projects. Crystal has
built its conversion expertise through the successful completion of
projects for many prestigious Fortune 1,000 companies, thus
establishing its competency and achieving global recognition and
presence.
The Crystal renovation methodology consists of several phases,
including assessment, conversion and testing. This methodology allows
for tailor-made adjustments to the automated process, based on client
requests, thus providing cost-effective, customized solutions.
Crystal's renovation solutions include platform and database
migrations, IT mergers and acquisitions, and language upgrades. They
are available for mainframe, midrange and client/server computing
platforms. Crystal Systems Solutions is a member of the Formula Group
(NASDAQ: FORTY), which is the largest public IT group in Israel.
About Formula
The Formula Group is an international information technology company
principally engaged, through its subsidiaries and affiliates, in
providing software consulting services developing proprietary software
products, and providing computer-based solutions.
Certain statements contained in this release may be deemed
forward-looking statements, with respect to plans, projections, or
future performance of the Company, the occurrence of which involves
certain risks and uncertainties that could cause actual plans to differ
materially from these statements. These risks and uncertainties include
but are not limited to: market demand for the Company's tools,
successful implementation of the Company's tools, competitive factors,
the ability to manage the Company's growth, the ability to recruit and
retrain additional software personnel and the ability to develop new
business lines. All names and trademarks are their owners' property.
Copyright (C) 1999 Business Wire. All rights reserved.
Distributed via COMTEX.
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CONTACT: Company Contact:
Iris Yahal/Chief Financial Officer
Crystal System Solutions
972-9-952-6110
or
Investor Contacts:
Richard Schineller/Jill Meleski
Press Contact:
Jennifer Gery
Morgen-Walke Associates, Inc.
(212) 850-5600
WEB PAGE: businesswire.com
GEOGRAPHY: INTERNATIONAL AFRICA/MIDDLE EAST
INDUSTRY CODE: COMPUTERS/ELECTRONICS
ELECTRONIC
GAMES/MULTIMEDIA
HARDWARE
SOFTWARE
E-COMMERCE
INTERNET
TELECOMMUNICATIONS
MERGERS/ACQ
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