Release - NEWSYS now a dot.com company
[Jean-Robert - another pleasant Xmas surprise!]
NEWSYS TO ACQUIRE INBUSINESS.COM
OTTAWA, ONTARIO-- December 22, 1999
Transaction gives Ottawa company Internet portal and media
marketing channel
NewSys Solutions Inc. ("NewSys") (CDNX: NSS), an IT services
company headquartered in Ottawa, Canada, announced today that it
has signed a Letter of Intent to acquire inbusiness.com and its
subsidiary business media operations in a move that would give
NewSys an Internet practice and marketing channel for its Business
Intelligence products and services.
As previously reported, many NewSys clients and partners are
migrating to web-based environments. According to Mark Quigg,
President and CEO of NewSys, "With a platform like inbusiness.com,
NewSys would not only have direct experience in the deployment of
leading Internet and e-commerce solutions but could also deliver a
business-to-business channel. This is a unique proposition and it
means that we would have a lot more to offer our IT clients and BI
partners - and it would mean better future margins for NewSys".
Quigg added that "inbusiness.com can also promote its portal and
business service offerings at near-zero cost through its
subsidiary publications and in its various business-to-business
magazines and trade shows and in publisher-to-publisher
arrangements with other regional business publications. The
company's underpinning of strong regional publications and trade
shows means that there is a solid underlying asset value here",
said Quigg, "and enormous upside to the inbusiness.com channel".
Inbusiness.com grew out of The Business Media Network Inc. (BMN)
of Ottawa, and in a reorganization underway will become the parent
company of BMN, which operates regional business publications and
trade shows. BMN was founded four years ago as a diversified
business-to-business media company for the express purpose of
developing an audience for on-line business services. "This
business has quality products, 50% average annual growth, and good
cash flow", said Quigg, "and we like the inbusiness.com brand and
business model - unlike other business portals, it's not trying to
be a mere business shopping mall but is creating and packaging
deep services and solutions of practical value to the SME market."
He added that inbusiness.com has $4.3 million in revenue and is
cash flow positive.
David Luxton, majority owner and President of inbusiness.com and
BMN, said "inbusiness.com has developed some very attractive
product offerings but has been seeking a technical partner with BI
expertise and Internet platform management capability. Since
NewSys has growing strength in this market space and could benefit
strategically from a business-to-business Internet channel, we
feel there is strong logic to a combined effort, especially when
we also have the means to advertise and promote inbusiness.com
through our existing business publications and trade shows, plus
other publications that we are in the process of acquiring".
Inbusiness.com co-brands its services with business publications
and business organizations. It has been tested successfully in
Ottawa, which both companies consider the logical place since it
is a leading Canadian high tech centre and has the highest
concentration of Internet users in the country. Market response
is already generating significant revenues and exceptionally high
traffic.
The terms of the agreement provide for an all stock transaction of
up to 1.9 million common shares plus 500,000 common share
warrants, for a total transaction value of approximately $7
million. Conclusion of the transaction is expected by January
31st, 2000, subject to regulatory approval and agreement of
definitive terms.
All logos, trade names and product names and trademarks or
registered trademarks are property of their respective owners.
The Canadian Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
NewSys is an established IT-services company that delivers
forward-looking solutions in business intelligence, systems
integration and application management -and complements those
solutions with a variety of proprietary and customized software
products. Employing over 170 IT professionals, NewSys' clients
include Fortune 500 corporations and government departments
located in both Canada and the United States. The Company has
recorded 26 consecutive quarters of growth and profitability and
was acknowledged by Profit Magazine, for the third consecutive
year, as one of the fastest growing companies in Canada. For more
information on NewSys' software and services, please contact the
company's web site at www.newsys.com or telephone at (877)
761-9436.
All logos, trade names, and product names and trademarks or
registered trademarks are property of their respective owners. The
Canadian Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
FOR FURTHER INFORMATION PLEASE CONTACT:
Linear Capital Corp.
For investor relations
Tony Croll
(416) 364-2266
tony@linearcapital.com
www.linearcapital.com
or
NewSys Solutions Inc.
Mark Quigg or Sara Piracha
(877) 761-9436
sara.piracha@newsys.com
www.newsys.com
or
For Inbusiness.com and The Business Media Network Inc.
David Luxton
(613) 769-5353
david.luxton@sympatico.ca |
