PC ServiceSource expands international presence and
acquires stake in European service logistics firm
DALLAS--(BUSINESS WIRE)--Jan. 28, 1997--PC ServiceSource has started the new year by
expanding its global presence through acquiring a 19.5 percent equity stake in Delostar Electronics,
Ltd., a service parts and logistics company based in Manchester, United Kingdom.
"Service logistics is a worldwide business. As a young, but rapidly growing company, our best
approach for global expansion is to selectively align our company with international organizations that
are best positioned to execute to the high standards of service expected by our customers and
suppliers," stated Mark T. Hilz, president and CEO of PC ServiceSource. "Local market knowledge
is a fundamental requirement in our business. This business relationship establishes such a presence
without diverting our management attention from the U.S. market."
The terms of the arrangement with Delostar call for an initial equity investment with an option to
purchase the entire company at a later date. As part of the arrangement, Delostar becomes the
exclusive operations and marketing organization for PC ServiceSource in the United Kingdom and
Europe.
Delostar has adopted the PC ServiceSource information systems platforms and will now operate
under the name "Delostar - ServiceSource Europe." The minority stake gives PC ServiceSource the
fifth voting seat on the Delostar Board of Directors, which will be filled by Avery More, chairman of
the board of PC ServiceSource. The transaction was completed on Jan. 22, 1997.
George Buchan, managing director of Delostar, commented, "The potential synergy between our two
companies is enormous. The Pan European market will experience for the first time the benefits of
sophisticated logistics processes and capabilities which are made possible by this arrangement."
Delostar, with headquarters in Manchester and significant operations in London, is the leading
provider of service logistics to service providers and Original Equipment Manufacturers in the United
Kingdom. Among its other contracts, Delostar is the primary service logistics provider for AST UK
and Hewlett-Packard's Multivendor Service operations in the United Kingdom and France. Delostar
reported revenue of 5,500,000 British pounds for the fiscal year ended June 30, 1996.
Providing 30 different lines of parts to a worldwide customer base exceeding 20,000 active accounts,
PC ServiceSource (NASDAQ--PCSS) is the largest supplier of service logistics to service providers
and original equipment manufacturers in the PC industry. Cyclix Engineering, the company's
remanufacturing subsidiary, offers a range of services which strategically complement the
distribution-oriented service logistics offerings of PC ServiceSource. PC ServiceSource recently
launched pc service net, the PC industry's first real-time Internet ordering and information retrieval
system for spare parts. General and financial data is located on the Internet at www.pcservice.com.
CONTACT: PC ServiceSource
Mark T. Hilz or James N. Contardi, 972/406-8583 |
