NEWS NEWS
PHOENIX (April 26) BUSINESS WIRE -April 26, 1999--International Fibercom
Inc. (NASDAQ: IFCI) and its Chairman and CEO Joseph P. Kealy Monday
announced that the company has signed a letter of intent to purchase
Inform Worldwide Inc. for up to $2.5 million in cash and common stock.
The closing of the transaction is subject to the execution of a
definitive agreement and due diligence. Inform will operate as a wholly
owned subsidiary of IFCI.
Inform, based in Englewood, Colo., is a privately held, boutique
consulting firm. Preliminary unaudited sales for calendar 1998 were
$2.4 million. It was profitable. Inform provides training, consulting
and software development to the utility industries.
Inform has expertise in the development of internet based applications
and in the deployment of state of the art geographical information
systems' (GIS) software. GIS systems allow telephone companies, cable
companies and other utilities to document their infrastructure in an
accessible database.
Within telecommunications, most RBOC'S (the former Regional Bell
Operating Companies) and major cable operators have begun, or are
considering, conversion of their existing systems' documentation to
GIS. Inform has technology partnerships with the Convergent Group,
Hewlett-Packard and Smallworld Systems.
Their customers have included Bell Atlantic, Telecordia/Bellcore,
Commonwealth Edison, CNG, NASD, US West and Hewlett-Packard.
The purchase agreement calls for an initial payment, based upon book
value, of approximately $500,000. The remainder of the purchase price
is subject to the achievement of pretax earnings targets over the next
four years. No less than 25% nor more than 50% of the purchase price
will be paid in stock, at IFCI's discretion. The restricted shares have
piggyback registration rights.
Kealy stated, "Inform has leading technical expertise in the
development of internet based business solutions as well as in the
deployment of GIS technology. These skills are both in great demand in
our industry. Inform also has close ties to its technology partners and
a great reputation as a straight forward, no nonsense, technical
resource.
"IFCI's Compass Communications subsidiary is already at the forefront
of the revolution taking place with GIS conversion. Inform puts IFCI
further ahead in the lead in this race and provides IFCI with internet
application development expertise. Inform also brings much needed
training and course development experience to IFCI with a targeted
focus on broadband documentation and design."
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