(PR NEWSWIRE) IVG Corp. Completes the Acquisition of SES-Corp., Inc.
IVG Corp. Completes the Acquisition of SES-Corp., Inc.
Acquisition of SES Catapults IVG Corp. Into the Multi-Billion Dollar
Professional Employer Organization Industry
HOUSTON, March 30 /PRNewswire/ -- IVG Corp. (OTC Bulletin Board: IVGG)
(http://www.ivgcorp.com) today announced that the Company has completed the
acquisition of SES-Corp., Inc. (SES) -- one of the largest full service
Professional Employer Organizations in the United States. Under the terms of
the agreement, SES will become a wholly owned subsidiary of IVG Corp., and
continue to operate under the name, SES-Corp., Inc.
The transaction marks IVG Corp.'s first acquisition in one of the fastest
growing industries in the country, and represents a significant milestone in
the Company's core business strategy to consolidate the U.S. Professional
Employer Organization (PEO) industry.
The acquisition of SES offers shareholders of IVG Corp. a dramatic
improvement in shareholder value. Based on unaudited financial data, SES
recorded revenues of approximately $979 million in fiscal year 2000, and
$210 million in the first quarter of 2001. SES books for 2000 are not closed
and audited financial statements are not completed, however, the company
expects to report a minor loss. SES has clearly established itself as a
dominant player in the PEO marketplace. As a result of this acquisition, IVG
Corp. anticipates its consolidated revenues will increase from approximately
$350,000 in 2000, to roughly $1.2 billion in 2001.
"We are extremely pleased with the acquisition of SES," said President and
CEO of IVG Corp., Mr. Elorian Landers. "This exciting development creates the
foundation for our expansion into the multi-billion dollar PEO market, and a
dynamic growth vehicle that will benefit shareholders well into the future.
SES is an organization we have always admired because of its consistent
history of growth, asset quality and market share. The acquisition of SES
significantly enhances the value of the IVG Corp. portfolio."
"Today marks an important first step in our plans to consolidate the PEO
industry," commented the CEO of SES, Mr. Dennis Lambka. "The collaborative
nature of the deal and the clear strategy established for the future sets the
stage for our success. We have already identified several prospective
acquisition targets, and anticipate a series of significant announcements over
the coming months.
"Through our alliance with IVG Corp., we have also created an exciting new
opportunity to improve the services of SES. With IVG Corp., we now have
access to the technical expertise that will enable us to carry out our
Internet strategy and deploy our staffing and human resource services via a
web-enabled environment."
Under the terms of the acquisition, shareholders of SES will be issued
restricted shares equal to 25 percent of the IVG Corp. common stock currently
outstanding. An additional eight percent may be issued in 2002, depending on
the EBITDA of SES in 2001. Approximately 85 percent of the shares initially
issued under the transaction will be placed in escrow to secure certain
indemnification obligations of the SES shareholders. The transaction, which
is structured as a triangular merger, will be accounted for as a purchase and
become effective on April 1, 2001. In addition, two SES executives will be
appointed to the IVG Corp. Board of Directors.
About Professional Employer Organizations (PEOs)
Professional Employer Organizations are companies that contractually
assume and manage human resources, personnel responsibilities and employer
risks by establishing and maintaining an employer relationship with worksite
employees. One of the fastest growing industries in the United States, the
PEO industry is growing at an annual rate of approximately 35 percent.
According to industry analysts, gross industry revenues for PEOs increased
from $5.0 billion in 1991 to $25.0 billion in 2000. Industry observers
estimate that PEOs have penetrated only three percent of the U.S. market. In
a fragmented industry with more than 2,500 companies currently providing PEO
services, the opportunity for future consolidation appears likely.
Other major PEOs include Administaff Inc., Staff Leasing Inc., Barret
Business Services Inc., TEAM Mucho Inc., TeamStaff Inc., Automatic Data
Processing, Inc. and Kelly Services Inc.
About SES-Corp., Inc.
SES is one of the largest full service Professional Employer Organizations
in the United States. Founded in 1989, SES offers small and medium-sized
businesses comprehensive management services for the daily administration of
human resources and employer obligations. These professional services include
payroll and benefits administration, compliance management, medical and
workers' compensation insurance programs, unemployment insurance and claims
administration, recruiting and placement services, and training and
supervisory development services. Headquartered in Auburn Hills, Michigan,
SES currently has 10 offices in nine states, with operations in 42 states
servicing over 2,700 clients and more than 39,000 worksite employees
nationwide.
About IVG Corp.
IVG Corp. is a Houston-based human resource and technology holding company
that acquires, develops and operates revenue-generating companies with a
compelling business model, technology and/or proprietary service. IVG Corp.
provides a value-added corporate structure intended to enable its portfolio
companies to quickly leverage their expertise and deploy their business
strategy by utilizing the management, financial and corporate resources of the
Company. IVG Corp. currently trades on the NASD OTC Bulletin Board under the
symbol IVGG.
For more information or to request a detailed Investment Package, please
visit ivgcorp.com or contact Richard Twardowski at (713) 596-9313.
Safe Harbor Statement: This press release includes forward-looking
statements, including statements relating to the future results of operations
and business strategy of SES and IVG Corp. These statements are made under
the "safe harbor" provisions of the Private Securities Litigation Reform Act
of 1995 and involve risks and uncertainties that could cause actual results to
differ materially from those in the forward-looking statements. These risks
and uncertainties include, among others: risks relating to the ability of IVG
Corp. management to successfully accomplish fund raising activities, the
ability to achieve or sustain profitability; limited operating history;
possible financing needs; risks associated with identifying and completing
acquisitions; risks associated with the integration of acquired technologies,
operations and personnel; risks of being deemed an investment company;
exposure to unforeseen liabilities of acquired companies; the requirement to
record additional future operating costs for the amortization of goodwill and
other intangible assets, which amounts could be significant; business
conditions in the PEO, e-commerce and Internet industries generally; the
impact of market competitors and their product and service offerings; and the
economic, competitive, governmental, technological and other factors
identified in IVG Corp.'s filings with the Securities and Exchange Commission.
These factors are described in further detail in IVG Corp.'s filings with the
Securities and Exchange Commission, available online at
freeedgar.com.
CORPORATE CONTACT
IVG Corp.
Mr. Richard Twardowski
Phone: (281) 295-8400
Email: richard@ivgcorp.com
Web: www.ivgcorp.com
INVESTOR & MEDIA RELATIONS
Mindshare Communications Inc.
Mr. Anthony Zelen
Toll Free: (888) 301-6788
Fax: (604) 806-3367
Email: ivgg@mindsharecommunications.com
SOURCE IVG Corp.
-0- 03/30/2001
/NOTE TO EDITORS: SES was recently named in Forbes annual listing of the
Top 500 Private Companies in the United States./
/CONTACT: Richard Twardowski of IVG Corp., 281-295-8400, or email,
richard@ivgcorp.com; or investor & media relations, Anthony Zelen of Mindshare
Communications Inc., 888-301-6788, or fax, 604-806-3367, or email,
ivgg@mindsharecommunications.com, for IVG Corp./
/Web site: ivgcorp.com /
(IVGG)
CO: IVG Corp.; SES-Corp., Inc.
ST: Texas, Michigan
IN: CPR FIN OTC
SU: TNM
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