Dow Jones News Service ~ November 1, 1996 ~ 3:30 pm EST
ROCKVILLE, Md. (Dow Jones)--Computer Data Systems Inc.'s (CDSI) CDSI
Business Applications Solutions Co. unit formed a new company with InTuition Inc., Jacksonville, Fla., combining their student loan guaranty agency service businesses.
A Computer Data spokesman said the company will own a little more than 50% of the venture, and InTuition will own a little less than 50%.
In a press release, Computer Data said the companies will invest $1.5 million in initial working capital and equipment.
Computer Data said in connection with the new venture, it expects to issue about 20,000 common shares in exchange for certain InTuition assets. The spokesman said the company had fewer than 5,937,000 shares outstanding. Computer Data said the companies will also contribute certain existing contracts, worth about $11 million in initial annual revenues, to the venture. Computer Data said Chuck Hosea, formerly senior vice president of InTuition's Gurantor Services unit, was named president of the new company, to be called GuaranTec LLP. The new firm will be based in Jacksonville.
InTuition provides student loan and tuition processing services.
Computer Data Systems provides information technology solutions. Its CDSI unit provides system and consulting services to Federal Family Education Loan Program guaranty agencies.
(END) DOW JONES NEWS 11-01-96
3:30 PM
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Mike |
