Tuesday May 4, 12:36 pm Eastern Time
ATEC to merge with Wareforce.com
HAUPPAUGE, N.Y., May 4 (Reuters) - Computer systems company ATEC Group
Inc. said on Tuesday it agreed to merge with Wareforce.com Inc. in a
stock swap that will create an information technology and services
provider with $300 million in revenues.
ATEC, which values the deal at more than $72.5 million based on current
stock prices, will issue .75 of a share of ATEC common stock for each
share of Wareforce.com common stock outstanding. ATEC expects the
merger, which will be accounted for as a pooling of interest, to close
in the third quarter.
''The move is a natural extension of our strategy to become the
single-source solution of all aspects of information technology,
e-commerce and telecommunications to our customers,'' said Orie
Rechtman, Wareforce chairman and chief executive officer, in a
statement.
ATEC said Wareforce plans to leverage its existing relationships with
manufacturers, distributors and customers to launch uMember.com, of
which Wareforce owns 70 percent. Wareforce expects uMember.com, a sales
and auction Web site, to go online in July.
The company expects the site to serve about 3 million to 5 million users
and anticipates that the number will increase as a result of the merger,
according to ATEC.
Shares of ATEC rose 11/16 on the Nasdaq to 9 in early afternoon trading,
below their 12-month high of 11-1/2 but above their 12-month low of
2-7/8.
Shares of Wareforce.com dipped 1/16 on the OTC Bulletin Board to 5-3/8,
below their 12-month high of 11-7/8 but above their 12-month low of
2-5/8. |
