Multiactive Software to Acquire Majority Share of Hong Kong-based ABC Data &
Telecom Ltd.
Multiactive, Through Its Multiactive Pacific Subsidiary, Now Positioned to Be Asia's Leading E-business Solution Provider
VANCOUVER, British Columbia, Feb. 1 /CNW/ -- Multiactive Software Inc. (Toronto: E), a leading provider of e-business front office solutions, announced today that its board of directors has approved an agreement under which Multiactive is to acquire, through its Asia Pacific subsidiary, Multiactive Pacific, a controlling interest in privately held ABC Data & Telecom Ltd.
Based in Hong Kong, ABC was founded in 1978 and is the leading supplier of e-commerce and CRM solutions and a distributor of Multiactive's products. ABC also develops and supplies mission critical trading software to many of the
top worldwide financial institutions, including the Hong Kong stock exchange,Merrill Lynch, Goldman Sachs and Salomon Smith Barney in their Hong Kong and Asian operations. ABC has an estimated 70 percent of the market among Hong Kong's medium to large brokerage firms.
Multiactive Software Inc. plans to regroup its Asia Pacific operation under Multiactive Pacific, which is to include its existing operations in Australia and Singapore. Multiactive Pacific is to acquire 70 percent of ABC Data & Telecom for consideration of CDN $10.7 million which will be
comprised of CDN $8 million shares of Multiactive Software Inc. to be issued from treasury, subject to regulatory approval, and CDN $2.7 million in cash funded by an entity controlled by the members of the family of Terence Hui, Chairman of Multiactive. The family of Terrence Hui will hold approximately 20 percent of the shares of Multiactive Pacific. Anthony Au, the Founder and Managing Director of ABC, will retain 30 percent of the shares of ABC.
Mr. Au is the President of the Hong Kong Information Technology Federation.
Terry Hui abstained from voting as a director on the approval of the transaction. The interest of the Hui family in Multiactive Pacific will be reviewed by the independent directors of Multiactive Software Inc.
"Multiactive Software Inc. will be well positioned with this acquisition to form strategic alliances with key players in the Asia Pacific region," said Hui. "Through Multiactive Pacific, the company will also have the option to raise capital in the Asia capital markets with this separate entity to fund our expansion in this region."
Added Brent Halverson, President, Multiactive, "The e-business market in China is growing at over a thousand percent annually. This acquisition gives us a significant competitive advantage in expanding our presence in this
booming region. We can now provide unparalleled support and service to our distribution and VAR network in Asia Pacific."
"Our past experience as a Multiactive distributor has put us in a good position to localize Multiactive's existing products, including the Entice! e-business solution," said Au. "And because incremental revenue will result from this tighter integration with our products for the financial market, we are happy to forge this relationship and extend our e-business strategy within Asia.
About Multiactive Software
Multiactive Software Inc. is a leading developer of innovative e-business, sales, marketing, and customer management software, including Entice!(TM), ecBuilder(R), ecBuilder Pro(R), Maximizer(TM), and Maximizer Enterprise(TM).
Designed to attract and retain customers, these award-winning applications are used by more than a million people worldwide.
Multiactive Software has won numerous awards over its 13-year history. This includes the recent distinctions of the "Best of COMDEX/Fall 1999" award from PC WEEK, the Computer Reseller News "Recommended" award, and finalist for
the Software & Information Industry Association's 2000 Codie Awards in the category of "E-commerce Software -- Best Product." Multiactive also won a Codie award for developing the "Best Internet Commerce Software" of 1999.
The company has offices located throughout North America, Latin America, Europe, and Asia Pacific and a customer base that includes such leading companies and institutions as Siemens, BankBoston, Travelers Insurance,
Virgin Records, and Pennzoil. To find out more about Multiactive Software and its products, call 800-804-6299 or visit www.multiactive.com.
This release may contain certain forward-looking statements reflecting Multiactive Software Inc.'s current expectations in the electronic business and sales and customer management software markets. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including, without limitation, changes in market and competition, technological and competitive developments, and potential downturns in economic conditions generally. Additional information on these and other
potential factors that could affect the Company's financial results are detailed in documents filed from time to time with the Ontario Securities Commission.
NOTE: All trademarks or registered trademarks stated herein are properties of their respective owners.
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For further information: Brenda Christensen, VP, Corporate
Communications of Multiactive Software Inc., 818-884-5391, or
blc@multiactive.com
/Web site: multiacti |
