Tuesday February 3, 12:22 pm Eastern Time
Company Press Release
CTIG Closes Transaction to Acquire Databit Ltd. - A Subsidiary of
Siemens plc
Merger Significantly Increase CTIG's Revenues, Customer Base, Staff, International Presence
VALLEY FORGE, Pa.--(BUSINESS WIRE)--Feb. 3, 1998-- CTI Group (Holdings) Inc. (OTC:CTIG - news), following a
board meeting, announced Tuesday that it has successfully concluded a transaction with Siemens plc of the U.K. to acquire
Databit Ltd., a wholly-owned subsidiary of Siemens plc operating exclusively in telemanagement products and services.
Databit now becomes a wholly-owned subsidiary of CTIG and will undergo a name change to CTI Data Solutions Ltd. to
reflect market synergies with CTIG's major U.S. subsidiary, CTI Data Solutions Inc. CTIG funded the transaction by the
issuance to Siemens of a $2 million promissory note which will become due for repayment by Feb. 2, 2001.
The note carries interest at the rate of 10% per annum payable quarterly in arrears and is secured by a second lien on CTIG's
assets.
Bill Driscoll, managing director of Siemens plc, will join CTIG's board of directors.
Based on historical financial information, the acquisition will dramatically increase CTIG's business. Assuming the acquisition
had been effective from April 1, 1997, the fiscal year ending March 31, 1998 would show pro form annualized revenues
increasing from approximately $3 million to approximately $8.5 million.
The customer base will increase from approximately 4,500 North American sites to over 13,500 sites world-wide; and staff
will increase from approximately 35 to 90 employees.
CTIG's chairman and CEO, Anthony P. Johns, said, ''that by acquiring Databit CTIG adds important critical mass;
strengthens its product portfolio; significantly expands its sales distribution channels; and, enhances its ability to market
products internationally, in particular, the ability to market and support its new telecommunications billing products overseas.''
Johns continued, saying that, ''the businesses of CTIG's U.S. subsidiaries and Databit are totally complementary. Both
recently introduced new, Year-2000 compliant, Windows OS products for sale into mature markets eager to replace obsolete
DOS systems and into new markets emerging world-wide from telecommunications industry deregulation.
''The companies have a non-overlapping market presence with respect to each other such that the merger will expand product
offerings to each of the companies' existing customer bases.''
Said Johns, ''We believe that Databit's high-end ClairePro (telemanagement) product for Windows NT(R) will gain an
established network of new U.S. distributors within six months. Subsequently, we will be investing further in our NEPTUNE
Billing System for Windows NT and utilizing fully the benefits of our newly established presence in the U.K.''
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 billing solutions for
providers of telecommunications services to invoice customers.
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.
Contact:
CTI Group (Holdings) Inc., Valley Forge
Mark Daugherty, CFO, 610/666-1700 |
