MYCO pr...mmmmmm..
BIG MERGER NEWS OF MYCO
MYCOM Group, Broughton International Intend to Merge; Goal:
Develop
MYCOM Group, Broughton International Intend to Merge; Goal: Develop and
Market Advanced Technology Products and Services for Businesses
CINCINNATI--(BUSINESS WIRE)--March 5, 2001--Two leading Cincinnati-area
technology companies today announced an intent to merge, leading to the
creation of a powerful, comprehensive source of brand-name software products
backed by integrated technology, communications, training and marketing
services for businesses. The merger would combine Mycom Group, Inc.
(OTCBB:MYCO), a publicly owned, leading provider of e-business and
communications consulting services to Fortune 100 companies, with Broughton
International Enterprise and Web Solutions. Broughton is a closely held
marketer of brand-name computer software and hardware to several thousand
businesses, government agencies and educational institutions across North
America, and a regional provider of Internet, e-business and network
consulting services.
Broughton said it has annual gross revenue of
approximately $6 million. MYCOM Group previously reported gross revenue of
$7.4 million for the first nine months of 2000. These revenues are unaudited
and are reported on a gross revenue basis subject to review for compliance
with the recently published Securities and Exchange Commission guidelines
for revenue recognition. As part of the transaction, the principal owners of
Broughton, Chairman Rob R. Bransom and President James T. Bobbitt, would
purchase a majority of the 49 million currently outstanding common shares of
MYCOM Group from the senior management of MYCOM. MYCOM Group would acquire
the business of Broughton by issuing additional shares and a note to
Broughton's owners. "This merger would unite two companies with
complementary technologies, offer infrastructure efficiencies, and create
the resources to develop and effectively market new products," Bransom said.
"Together, we can better market MYCOM Group's technology and training
products to Broughton's customers, and introduce Broughton's software,
networking and enterprise products and services to MYCOM Group's customers.
Jim and I are eager to begin creating new opportunities for the customers,
employees and shareholders of MYCOM Group." Bransom would become a director,
chairman and chief executive officer of MYCOM Group. Bobbitt would become a
director, president and chief operating officer. They bring to MYCOM Group
more than four decades of combined experience as senior executives of large
national and international businesses. Bransom was president and CEO of the
Kendall-Futuro Co., a $134-million health-care consumer products company,
and president of the Drackett Products Co., a $505-million Cincinnati-based
consumer products company. Bobbitt was national sales manager and vice
president of the Drackett Co. and executive vice president of the Kellogg
Companies.
Broughton International's software solutions include Citrix thin
client technology, WRQ's Reflection Web To Host connectivity software, and
McAfee.com's data security and anti-virus products. Broughton's e-business
services include a complete range of web development, hosting and management
solutions for large, medium and small businesses. George Young, chairman and
chief executive officer of MYCOM Group, is expected to become executive vice
president of MYCOM and remain a director.
The current MYCOM Group business
units would report to him. Joan Carroll, Patti Massey and Allan Massey are
expected to retire as officers and directors of MYCOM Group. Carroll,
president of MYCOM Group, will retain her role as president and majority
owner of MYCOM Enterprises, which would continue as a certified Minority
Business Enterprise (MBE) 49 percent owned by MYCOM Group. Patti Massey,
executive vice president of MYCOM Group, would become an officer of MYCOM
Enterprises. Allan Massey, vice president, would become a consultant to
MYCOM Group. Young said that the proposed transaction is ideal because it
would achieve in one step his strategic vision for MYCOM Group: to become a
complete, integrated provider of Internet, communications and marketing
solutions that can serve businesses and organizations of any size, anywhere.
"Uniting all of those elements in one company gives MYCOM Group exceptional
strength and breadth, and extends our fully integrated technology and
communications solutions to a much wider range of customers," he added. "I
am convinced that Rob and Jim are ready and able to lead MYCOM into the next
phase of its growth and development as a public company." The letter of
intent calls for MYCOM Group's corporate headquarters and 60 employees to
remain in downtown Cincinnati. Broughton's offices and the majority of its
16 employees are expected to remain in Blue Ash. Employment levels are not
expected to change significantly as a result of the proposed merger.
The
proposed transaction is subject to completion of due diligence examinations
and other conditions. Details of the transaction will be disclosed following
the signing of a definitive agreement. The managements of both companies are
working through the details and terms of the agreements and anticipate
completion within several weeks. About MYCOM Group MYCOM Group provides a
complementary mix of technology, training and communications services for
large businesses and organizations with an emphasis on solutions that are
Understood, Valued and Acted Upon(TM). MYCOM was formed in 1991 to provide
technical marketing and documentation services. It has added capabilities in
applications development, web-enabled applications, database applications,
online and classroom instructional design and training, and other services
that enhance the benefits of technology investments across the enterprise.
MYCOM's key clients are Procter & Gamble, General Electric Co. and Sallie
Mae (Student Loan Marketing Association). MYCOM's subsidiary, MYCOM
Enterprises, provides traditional and minority-focused advertising and
marketing services as a certified MBE to a number of organizations. MYCOM
Group is on the web at www.mycom.com. About Broughton International
Broughton International was established in 1984. It markets software,
hardware, consulting services and e-business systems and management to a
base of more than 20,000 business customers throughout North America.
Broughton also provides network consulting and web management services for a
number of Cincinnati companies, including Hart Productions, the Plastics
Molding Corp., Trico Belting and Watson's Super Stores. Broughton's
professional staff members hold certifications from Microsoft, Citrix and
Tele-Magic Products, and for a number of leading help desk, security,
emulation and connectivity solutions. Broughton is a value-added reseller
and business partner with leading technology companies such as IBM, Citrix,
McAfee and WRQ.
Notable customers include Revlon, NASCAR, Mercy Health
Partners and Quantum Corp. Broughton International is on the web at
www.broughton-int.com.
NOTE: This MYCOM Group press release contains certain
forward-looking statements within the meaning of the "safe harbor"
provisions of the federal securities laws. Such forward-looking statements
are subject to certain risks and uncertainties that could cause actual
results or outcomes to differ materially from those currently anticipated.
Important risks and uncertainties, among others, that could cause our actual
results to differ materially from those described in these forward-looking
statements include performance of all duties by all parties as outlined in
our letter of intent with Broughton International and its principal owners,
the satisfactory completion of due diligence examinations, the ability to
obtain relevant funding, approvals from existing creditors, and other
factors. For additional information about Mycom Group, Inc. please refer to
its filings with the Securities and Exchange Commission. --30--ym/cgo*
CONTACT: MYCOM Group, Inc. Wayne Buckhout, 513/352-5560 ext. 190
wbuckhout@mycom.com Today's News On The Net - Business Wire's full file on
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