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BOS-Better Online Solutions Announces the Acquisition of Pacific Information Systems for $12.4 Million
Business Wire - June 02, 1998 13:56
%BETTER-ON-LINE-SOLUTIONS BOSCF %NEW-YORK %COMPUTERS %ELECTRONICS %COMED %INTERACTIVE %MULTIMEDIA %INTERNET %MERGERS %ACQ V%BW P%BW
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TERADYON, Israel--(BUSINESS WIRE)--June 2, 1998--Better Online Solutions Ltd. (NASDAQ:BOSCF) today announced the signing of a definitive agreement to acquire Pacific Information Systems ("Pacific"), a rapidly growing, privately owned reseller of ISP, networking, and high-performance PC products headquartered in Beaverton, Oregon. Pursuant to the terms of the agreement, BOS is to pay $12.4 million, with approximately one-half of such amount payable at closing. The remainder is payable over two years, subject to certain performance targets. 70% of these payments will be made in BOS' Ordinary Shares with the balance (30%) payable in cash.
According to BOS' management, Pacific Information Systems will provide a significant boost to the company's distribution capabilities in North America. Pacific's audited financial statements for the year ended Dec. 31, 1997 showed revenues of approximately $20MM, up from just over $12MM for the same period in 1996. Net Income was approximately $1MM, up from $444,000 during 1996.
Israel (Izzy) Gal, Chairman and CEO of BOS said: "We are very excited about the acquisition of Pacific, which has long been an important member of our distribution network, and the prospects of leveraging our combined resources and capabilities. This transaction represents a major milestone in BOS' strategic plan to participate in the ongoing consolidation both in the IBM mid-range connectivity market and in the burgeoning PC networking market. We will continue our aggressive pursuit of suitable companies which serve these growing markets." Founded by Jacob Lee in 1993, Pacific provides a customized corporate connectivity solutions, and currently serves over 350 clients with network sizes of 200-2,000 workstations. Mr. Gal added, "We anticipate further penetration into Pacific's rich client base for BOS' existing and newly developed products including our IBM mid-range connectivity as well as our remote computer and telephony products."
The transaction is expected to close over the next few weeks, subject to BOS' shareholders approval, and customary closing conditions. Jacob Lee, Pacific's President will join BOS' Board of Directors and will also co-manage BOS' U.S. operations along with Martin Pladgeman, President of BOS USA, Inc.
Jacob Lee, President of Pacific Information Systems commented: "We are looking forward to working with the BOS team, and are excited by the access this combination will provide us to additional products and capital. Pacific's recent entry to the Internet market provides us with a more complete product package which could serve many of our customers, and we see BOS and its Lynk and Surf products as being part of this new strategy. Pacific has nearly doubled its sales in each of the last three years, and we look forward to the continuation of this fast-paced growth plan."
Jack
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