THIS NEWS LOOKS PROMISING
Basis100 to Acquire 100% of EFA International Inc.
Symbol: BAS
Industry: MLM
Subject: TNM
News release via Canada NewsWire, Toronto 416-863-9350 -ME-
Attention Business/Assignment Editors:
EFA provides a platform for international expansion in 36 countries
TORONTO, Jan. 17 /CNW/ - Basis100 Inc. (TSE:BAS), an e-commerce
technology solution provider for the financial services industry, today
announced that it has agreed to purchase 100% of the shares of EFA
International Inc., a leading provider of trading, clearing and settlement
technology solutions to a number of segments in the global financial services
markets. This transaction is effective immediately, subject only to regulatory
approval.
Consideration for the transaction is a combination of cash of $6.4
million (CDN) together with 2.7 million shares of Basis100. In addition,
Basis100 may issue up to 5.6 million additional shares, based on EFA achieving
aggressive revenue and EBITDA performance targets over the next two fiscal
years. This issuance of the performance-related shares will be formally
approved by the shareholders at the next AGM.
EFA was founded in 1985 and has since grown to provide and implement its
solutions for more than 53 exchanges and depositories in 36 countries on four
continents. EFA is a major provider of securities trading and clearing and
settlement systems all over the world. Its products and services are used for
end-to-end trade processing, settlement and clearing, and for key components
of exchange trading systems. EFA provides exchanges with leading edge
securities software and has expanded to provide systems to other market
participants, such as investment dealers and electronic markets.
"We are fortunate to acquire a company with the foundational strength,
the promise, the relationships and the stature of EFA. As with the purchase of
Solimar.Net in 2000, we were looking for a company with a complementary
product suite and a proven record of selling and servicing into markets new to
Basis100 -- EFA meets those requirements. Due to the recent market conditions,
EFA became available as an acquisition for Basis100 with a value proposition
that would not have been possible a year earlier," said Basis100 CEO and
president, Gary Bartholomew. "Having exceeded our prescribed targets for the
past several quarters, Basis100 has a very strong foundation on which to
leverage EFA's technologies, recurring revenues and customer relationships. By
acquiring EFA, Basis100 now has an international footprint -- getting us
closer to our goal to be a significant player in the global financial
community."
Basis100 intends to obtain a significant share of the financial services
marketplace worldwide over the next five years. To accomplish this in a multi-
billion dollar market, a number of significant acquisitions will be required.
The EFA transaction is an example of such an acquisition, intended to
significantly increase revenue and EBITDA, while providing internal synergies
that will strengthen the business activities of the core businesses of both
Basis100 and EFA.
EFA has invested heavily in the development of new products over the past
several years in order to take advantage of a significant positive change in
the nature of its markets. With a prescribed requirement to faster settlement
processes, the industry will require the kind of technology available from EFA
to meet those needs. Given the investments made by EFA in the past, and the
marketing, sales, and research and development support to be provided by
Basis100, EFA is uniquely positioned to be the global leader in its
marketplace.
"We are very excited about the opportunities this acquisition brings to
both EFA and Basis100," said David Ewasuik, chairman and CEO of EFA. "Basis100
understands the intricacies of trading technology and has the expertise to
work with us to take our technology to the next level. Many of our customers
are moving towards adopting a transaction-based solution, similar to
Basis100's model, over the next few years. We look forward to both sales teams
working together to sell current Basis100 and EFA technologies around the
world."
"This acquisition will provide significant benefits to the shareholders
of Basis100," said Bartholomew, "We expect revenues and EBITDA to increase
significantly as a result of this transaction. Just as the revenues generated
by Basis100 have been highly predictable from an existing customer base, EFA,
too, has clear visibility in that a significant percentage of its projected
revenue will come from current and committed customers. Moreover, the nature
of EFA's technology is that it becomes deeply entrenched in its customers and
therefore customer longevity tends to be significant."
Subject to regulatory approval, David Ewasuik will join the Basis100
Board of Directors.
Conference Call Information
Gary Bartholomew, CEO and chairman, and Lance McIntosh, CFO, of Basis100
Inc. will hold an open conference call to review the company's recent
acquisition of Calgary-based EFA International on Friday, January 18, 2002 at
9:00 a.m. (EST). All interested parties can access the conference call (listen
only mode) over the Web by connecting through Basis100's Web site
www.can.Basis100.com and clicking on "Investors/Conference Calls" to access
the link or by calling in to the live call at 1-888-293-1201.
A telephone post-view will be available until 11:59 p.m. (EST) January
25, 2002 by dialing 1-800-558-5253. Please enter the reservation number
20259935(number sign) or by visiting the corporate Web site at
www.Basis100.com and clicking on "Investors/Conference Calls".
About EFA
EFA was founded in 1985 and has since grown to provide and implement its
solutions for more than 53 exchanges and depositories in 36 countries on four
continents. EFA is a major provider of securities trading and clearing and
settlement systems all over the world. Its products and services are used for
end-to-end trade processing, settlement and clearing, and for key components
of exchange trading systems. EFA provides exchanges with leading edge
securities software and has expanded to provide systems to other market
participants, such as investment dealers and electronic markets. For more
information about EFA, visit www.efasoftware.com.
About Basis100
Basis100 is a leading e-commerce technology solution provider for
financial institutions and service providers enabling them to build,
distribute, buy and sell their products and services in new ways. Basis100 is
focused on the mortgage origination, consumer credit, trading, clearing and
settlement, and service vendor markets globally. For more information about
Basis100, visit www.Basis100.com.
Forward-looking (safe harbor) statement
Statements made in this news release that relate to future plans, events
or performances are forward-looking statements. Any statement containing words
such as "believes", "plans", "expects" or "intends" and other statements which
are not historical facts contained in this release are forward-looking, and
these statements involve risks and uncertainties and are based on current
expectations. Consequently, actual results could differ materially from the
expectations expressed in these forward-looking statements.
%SEDAR: 00002699E
-0- 01/17/2002
/For further information: please contact: MEDIA RELATIONS - CANADA -
Terri Muccilli-Oswald, Media Relations, Basis100 Inc., (416) 953-4936,
tmuccilli-oswald(at)basis100.com; MEDIA RELATIONS - UNITED STATES - Cris
Peters, Media Relations, Basis100 Inc., (404) 256-9767,
cpeters(at)basis100.com; INVESTOR RELATIONS - Lance McIntosh, CFO, Basis100
Inc., (416) 364-6085 Ext 170, lmcintosh(at)basis100.com; INVESTOR RELATIONS -
Scott Koyich, Investor Relations, Basis100 Inc., (403) 215-5979,
skoyich(at)basis100.com/
(BAS.)
CO: Basis100 Inc.
ST: Ontario
IN: MLM ECM
SU: TNM |
