PCNet Founder/CEO Soto Sees 'Synergy in Combined Expertise' in Proposed Acquisition by Carnegie International Corporation
BALTIMORE--(BUSINESS WIRE)--Feb. 26, 1999--Camilo Soto, founder and CEO of PCNet, Inc., of Trumbull, Conn., said today he is very excited about the proposed acquisition of his company by Carnegie International Corporation (OTC BB: CAGI) announced yesterday.
Carnegie said a Letter of Intent has been signed to acquire PCNet, Inc (www.pcnet-inc.com),a leading value-added reseller specializing in Electronic Commerce (E-Commerce) and Electronic Digital Interchange (EDI), PC hardware, software, network integration and support services. A holding company specializing in Internet, telephony and telecommunications products, services and distribution, including E-Commerce and EDI, Carnegie (www.carnegieint.com) is based in suburban Baltimore.
Soto said he ''is pleased to be joining companies whose technological capabilities will enhance the current product and service offerings to our existing customers, as well as to what will be our combined customer base. We look forward to the synergy that will result from such combined expertise,'' he said, ''which I believe will bring tremendous growth opportunities for all involved.''
''This venture,'' he added, ''will allow us to integrate our robust E-Commerce capabilities with Internet technologies, and provide our customers with a one-stop shop for emerging technology solutions.''
Carnegie Chairman and COO E. David Gable, Carnegie said Soto has agreed to become a member of Carnegie's Board of Directors upon completion of the acquisition.
Former D&B Company Now an E-Commerce and EDI Pioneer and Leader
PCNet was established in 1985 as a division of Dun & Bradstreet Corporation (NYSE: DNB - news) to provide IT products and services to its operating units and to other Fortune 1000 companies. In December 1993, the company was privately purchased by Soto, and under his guidance it helped pioneer and become a leader in E-Commerce and EDI, leveraging technical expertise, industry knowledge, innovative corporate purchase programs, and highly competitive pricing.
The Trumbull company also continues to provide products and services to D&B and other Fortune 1000 firms, and is a one-stop source for quality technical support nationwide, supporting PCs and software from 1,400-plus manufacturers and publishers, with certified experts on Microsoft, Novell, Lotus, Compaq, IBM, Hewlett Packard, Cisco Systems. Its support services client roster includes The Federal Reserve Bank of New York, R.H. Donnelley, Pfizer, Duracell, SNET, the United
Nations, Yale Haven Hospital, Motorola, and ESPN. Further leveraging PCNet's client/server technology and familiarity with E-Commerce, in 1992 Soto launched ViewTek, which specializes in Inter/Intranet solutions design and implementation.
PCNet has been ranked by VARBusiness Magazine as the 226th largest value-added reseller in the U.S., and received the Supplier Award for Excellence from Motorola in 1997.
Lowell Farkas, president and CEO of Carnegie, said the agreement is subject to normal due diligence by both parties and that a definitive agreement could be signed by the end of March. Upon acquisition, he said, PCNet will become a wholly-owned subsidiary of Carnegie International, ''remaining in Trumbull, management and staff intact, where we plan for the company to continue to flourish and grow.''
Farkas said Carnegie forecasts revenues for PCNet in excess of $50 million for fiscal 1999, with a pre-tax profit approaching $3 million. He said that with the acquisition of PCNet, and with other acquisitions pending including the scheduled March closing on Paramount International Telecommunications of Vista, California, Carnegie's revenues could exceed $100 million in 1999.
Carnegie Set to Report Audited Earnings
Farkas also said Carnegie will announce its audited year-end financials in compliance with SEC regulations by March 31. Carnegie became a fully-reporting company under the Securities and Exchange Commission Act of 1934 in late December.
Carnegie International Corporation is a holding company specializing in Internet, telephony and telecommunications products, services and distribution, including E-Commerce and EDI. Its MAVIS(tm) (Multi-Language Automated Voice Independent System) is a breakthrough in speech recognition-driven automated attendant/ voice mail systems, using proprietary IVR (interactive voice response) software to recognize/respond to callers. The entirely voice-driven MAVIS interface is available in English and all foreign languages supported through licensed Lernout & Hauspie (NASDAQ: LHSPF - news) software, and supports Dialogic (NASDAQ: DLGC - news) CPU telephony cards. Carnegie's primary wholly-owned subsidiaries include: RomNet Support Services, Inc., an Internet, e-business and technical support services company Profit Through Telecommunications (Europe) Ltd. (PTT), a telecommunications software company providing business solutions utilizing proprietary speech recognition, touch tone and bar code responses to send and/or receive information; ACC Telecom of Columbia, Maryland, a leading reseller of equipment and business telephone systems from Comdial (NASDAQ: CMDL - news), SONY® (NYSE: SNE - news), and Sprint® (NYSE: FON - news), and Voice Quest, Inc., of Sarasota, Florida, a developer and provider of speech recognition and voice mail technologies and products. On December 28, 1998, Carnegie became a fully reporting company under the Securities and Exchange Act of 1934.
Private Securities Litigation Reform Act of 1995 provides a ''safe harbor'' for forward-looking statements. Certain information included in this Press Release (as well as information in oral statements or other written statements made or to be made by Carnegie International Corporation) contain statements that are forward-looking, such as statements relating to the future anticipated direction of the telecommunications industry, plans for future expansion, various business development activities, planned capital expenditures, future funding sources, anticipated sales growth, and potential contracts. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future, and accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of Carnegie International Corporation. These risks and uncertainties included, but are not limited to, those relating to development and expansion activities, dependence on existing management, financing activities, domestic and global economic conditions, change in Federal or state laws, and market competition factors.
MAVIS is a trademark of Carnegie International Corporation. Other trademarks are properties of their respective owners.
Contact:
Lowell Farkas
Carnegie International Corporation
+(410) 785-7400
lfarkas@carnegieint.com
or
David A. Kaminer
The Kaminer Group
+(914) 684-1934
dkaminer@kamgrp.com
biz.yahoo.com
I had to post this since it does such a nice job of filling investors in on what CAGI is doing.
Regards, Jeff
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