Tuesday August 19 6:06 PM EDT
Company Press Release
Pending Financing, CTIG Will Triple Its Size With Planned Acquisition
VALLEY FORGE, Pa.--(BUSINESS WIRE)--Aug. 19, 1997--CTI Group (Holdings) Inc. (OTC:CTIG) announced
Tuesday that it has entered into a memorandum of understanding to acquire the assets of an international telecom software
business.
The agreement is subject to completion of a definitive agreement and securing the necessary financing. The planned acquisition
would substantially improve CTIG's balance sheet and would assist the company in seeking an earlier relisting of its common
stock on the NASDAQ exchange.
Based on historical financial information, the acquisition would immediately triple CTIG's annual revenues from approximately
$3.9 million to approximately $11.3 million; customer base from approximately 4,500 North American sites to over 13,500
sites world- wide; and staff from approximately 35 to 100 employees.
CTIG's chairman and CEO, Anthony P. Johns, said that annual revenues could reach as much as $24 million within two years
from the internal growth of the combined companies exclusive of other acquisitions.
The two businesses are totally complementary and together will present a formidable international organization. Both
companies recently introduced new, Year-2000 compliant, Windows OS products for sale into mature markets eager to
replace obsolete DOS systems.
Both companies are also seeking to expand distribution channels into new markets emerging world-wide from
telecommunications industry deregulation. The companies now have a non-overlapping market presence with respect to each
other such that a merger will immediately expand product offerings to each of the companies' existing customer bases.
CTIG, through its wholly-owned subsidiaries, designs, develops, markets and supports information processing software and
services for managing telecommunications systems. The company provides telemanagement solutions to corporate users of
telecommunications services and customer billing solutions to providers of telecommunications services.
CTIG has appointed Colmen Capital Advisors Inc. of King of Prussia to facilitate all aspects of the transaction. Colmen
Capital Advisors provide investment banking services for mergers and acquisitions, and corporate financing for restructuring,
expansion and strategic planning.
This release contains forward-looking statements that involve risks and uncertainties. These statements may differ materially
from actual future events or results. Readers are referred to documents filed by CTIG with the U.S. Securities and Exchange
Commission, specifically, the most recent Form 10-KSB.
For more information, contact: Mark H. Daugherty, CTI Group (Holdings) Inc., P.O. Box 80360, Valley Forge, Pa. 19484,
Telephone: 610/666-1700; Elliot L. Goldman, Colmen Capital Advisors Inc., 500 North Gulph Road, King of Prussia, Pa.
19406, Telephone: 610/354-9050. |
