Merisel Completes Sale of Software Licensing Assets
biz.yahoo.com
Wednesday August 18, 7:50 pm ET
EL SEGUNDO, Calif.--(BUSINESS WIRE)--Aug. 18, 2004--Merisel, Inc. (Nasdaq:MSEL - News) today announced that Merisel Americas, Inc., its wholly-owned operating subsidiary, completed a transaction to sell certain of its assets that principally comprise the software licensing business, including any notes and real property assets ("Software Licensing Assets"), to D&H Services, LLC. Pursuant to the terms of the Purchase Agreement dated August 13, 2004, between Merisel Americas, Inc. and D&H Services, LLC, the purchase price is equal to the book value of the Software Licensing Assets, less certain assumed liabilities. The final determination of the book value of the Software Licensing Assets and the assumed liabilities will be determined within 60 days. A preliminary estimate of the book value of the Software Licensing Assets and the assumed liabilities as of August 17, 2004 was approximately $5.5 million and $6.1 respectively, resulting in a payment to D&H Services, LLC. These calculations are subject to various adjustments pursuant to the terms of the Purchase Agreement.
Now that the transaction has been consummated, the Company will have no on-going revenues, other than interest income. During the third quarter of 2004, the Company will present the software licensing business as discontinued operations and anticipates incurring certain related restructuring costs of approximately $1.0 million to $2.0 million. The Company expects that after the sale and the restructuring of the remaining business, annual operating expenses will be reduced by approximately $4.0 million when compared with annualized operating expenses for the second quarter of 2004.
The Company intends to continue seeking acquisition opportunities that will enhance long-term shareholder value. It is management's expectation that a transaction will be completed within the next twelve months. While the Company is currently exploring several opportunities, there are no assurances that a transaction will be successfully completed. Until such time as the Company completes and grows a potential acquisition, the Company does not anticipate being profitable.
Except for the historical information contained herein, the matters discussed in this news release constitute forward-looking information that involves risks and uncertainties. Merisel's actual results could differ materially from those indicated by the forward-looking information. Among the factors that could impact actual results are demand trends in the computer products industry, competitive issues, changes in manufacturer terms and conditions, and other items detailed in the company's SEC filings.
Contact:
Merisel, Inc.
Timothy N. Jenson, 310-615-6850 |
