FFTI -4Front Technologies, Inc. to Acquire European Computer and Telecom Services Group
-SIL Group Acquisition Expands 4Front's European Presence to Germany, Holland, Spain, Scandinavia and Eastern Europe-
LONDON--(BUSINESS WIRE)--Aug. 3, 1999-- 4Front Technologies, Inc.
(''4Front'') (Nasdaq:FFTI - news; Easdaq:FFTI) today announced it has entered into a definitive agreement to acquire the SIL Service Industries Group (''SIL''), a European
computer and telecom services group.
4Front has agreed to acquire SIL for a total consideration of approximately $2.3
million, consisting of $1.7 million in cash and 60,000 4Front shares.
4Front anticipates that SIL will contribute revenues of at least $20 million in the
first 12 months after closing the acquisition and that it will be accretive to
earnings by the end of the current fiscal year. Following the acquisition, 4Front will
have operational locations in European markets that account for over 90% of the overall
European computer services market.
With offices in the UK, Germany, Holland, France, Spain, the Czech Republic, Sweden
and Poland, SIL has established itself as a leading European provider of specialized
computer, telecom and network services. SIL will give 4Front its first operational
presence in key IT service markets including Germany, Holland, Spain, Scandinavia and
Eastern Europe. In addition, SIL has valuable trade alliances in Norway, Finland and
Portugal.
The acquisition will also give 4Front a more significant involvement in telecom services
and will bring the Company a strong customer list which includes several of the world's
leading computer and telecom equipment manufacturers.
Anil Doshi, Chairman and Chief Executive Officer of 4Front, said, ''The acquisition of
SIL is an important step in establishing 4Front as a truly pan-European provider of IT
services. It not only gives 4Front its first operational presence in a number of key new
European markets such as Germany, Spain and Holland, which was one of our key
strategic targets for this year, but also strengthens 4Front's presence in the UK and
French computer service markets. Furthermore, the SIL acquisition provides us with the
bonus of additional locations in Scandinavia and Eastern Europe. It also brings with it an
excellent management team, who will join our team and help us as we seek to achieve
our goal of becoming one of the top 10 independent European IT service companies.''
About 4Front Technologies, Inc.
4Front Technologies, Inc., is a leading provider of information technology and
outsourcing solutions, which consist of specialized computer services and
complementary products, primarily to blue-chip corporations in the United Kingdom
and Continental Europe. 4Front's services and solutions include help-desk support,
education services, hardware maintenance, network services, systems integration,
specialized software services and products and the supply of high-end storage systems.
4Front's customers include British Petroleum, British Telecom, Telecom Italia,
Computer Sciences Corp., Dupont, IBM, Cegedim, Renault, Energis, Pfizer, Cariplo,
JP Morgan and the UK Ministry of Defence. Additional information on 4Front can be
found on the Company's website at www.4fti.com.
------------------------------------------------------------------------
Contact:
Abernathy MacGregor Frank (U.S. Investor Relations)
Jason Thompson, 212/371-5999
or
Shandwick Consultants (U.K. Investor Relations)
Matthew Hooper, 011-44-171-329-0096
or
4Front Technologies, Inc.
Mark Ellis, 011-44-171-269-5848
or
Ken Newell, 011-44-171-269-5848 |
