Safeguard Scientifics, Inc. and OAO Technology Solutions, Inc. Announce Successful Completion of Rights Offering
WAYNE, Pa., Dec. 10 /PRNewswire/ -- Safeguard Scientifics, Inc. (NYSE: SFE), the New York Stock Exchange listed strategic information systems company, and OAO Technology Solutions, Inc. (Nasdaq: OAOT) announced that the initial public offering of common stock of OAO, effected through a rights offering to Safeguard shareholders, was successfully completed on December 4, 1997.
OAO and selling stockholders sold a total of 7,360,000 shares of OAO common stock (including 640,000 shares sold upon the exercise of the overallotment option by the underwriters Wheat First Butcher Singer and Janney Montgomery Scott Inc.) at $5.00 per share. Of the total number of shares sold in the offering, OAO sold 6,235,000 shares and received net proceeds of approximately $30.2 million (after underwriting commissions and offering expenses). Following the offering, Safeguard continues to beneficially own approximately 29% of the outstanding OAO common stock. On December 9, 1997, the closing price of OAO common stock was $9-1/2.
"We are very pleased with the success of the offering," commented Pete Musser, Chairman and CEO of Safeguard. "OAO's stock is performing well in the aftermarket. We believe this reflects the merit of Safeguard's strategy of giving potential growth value to our shareholders through rights offerings of common stock in Safeguard's partnership companies."
William Hill, CEO and President of OAO, stated, "We also were very pleased with the rights offering process and how smoothly everything went. Taking OAO public through the rights offering was a simpler process than a conventional IPO and allowed us to stay focused on building a successful business. We look forward to capitalizing on the enhanced market presence we should now have as a public company in the pursuit of our strategic growth objectives."
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 to various engagement clients. 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, McDonnell Douglas, PECO Energy and Ryder Systems Corp.
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.
CO: Safeguard Scientifics, Inc.; OAO Technology Solutions
ST: Pennsylvania
IN: CPR FIN
SU: OFR |
