Safeguard Scientifics and OAO Technology Solutions, Inc.
Announce Filing Of Registration Statement for OAO
Technology Solutions, Inc. Rights Offering
WAYNE, Pa., Aug. 21 /PRNewswire/ -- Safeguard Scientifics, Inc. (NYSE:SFE), the New York
Stock Exchange listed strategic information systems company, and OAO Technology Solutions, Inc.
jointly announced today that OAO has filed a registration statement with the Securities and
Exchange Commission for a rights offering to Safeguard's shareholders of approximately 6,400,000
shares of OAO common stock.
Safeguard and OAO anticipate that the rights will have an exercise price of $5.00 per share and that
the rights offering will commence in the fourth quarter 1997. Safeguard shareholders will receive
rights, exercisable for approximately 35 days after issuance, to purchase one share of OAO
common stock for every five shares of Safeguard common stock owned. There will be a minimum
exercise requirement of 20 rights. The offering will be made only by means of a prospectus, subject
to the effectiveness of the registration statement.
OAO provides a wide range of outsourced information technology solutions and professional
services, including the operation of large-scale data center complexes and networks, distributed
systems management, staffing services and other IT services. OAO provides these solutions and
services, generally on a long-term, fixed-price contractual basis, to strategic clients which are global
providers of IT outsourcing services. OAO works with these strategic clients, accepting delivery
responsibility for specific functional roles within the outsourcing engagements. OAO's primary
strategic clients have been IBM's Global Services and Digital Equipment Corporation. OAO is also
working towards establishing a strategic client relationship with Perot Systems Corp. Representative
engagement clients currently include Ameritech, Campbell Soup, Citibank, McDonnell Douglas,
PECO Energy and Ryder Systems Corp. OAO's revenues have expanded at a compound annual
growth rate of 60.5% from $22.5 million in 1994 to $57.9 million in 1996.
Safeguard is a unique partnership of entrepreneurial companies focused on information technology
markets. Safeguard has a proven track record of bringing emerging companies to market through
rights offerings to Safeguard shareholders. Past Safeguard rights offerings include Novell, Inc.,
CompuCom Systems, Inc., Cambridge Technology Partners (Massachusetts), Inc., Coherent
Communications Systems Corporation, USDATA Corporation, Integrated Systems Consulting
Group, Inc., Sanchez Computer Associates, Inc., Diamond Technology Partners Incorporated and
ChromaVision Medical Systems, Inc.
SOURCE: Safeguard Scientifics, Inc. |
