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Biotech / Medical : Novacare (NOV) breaking out... -- Ignore unavailable to you. Want to Upgrade?

To: Jim Oravetz who wrote (409)	9/9/1999 12:31:00 PM
From: Jim Oravetz	Read Replies (1) \| Respond to of 420

DJ NovaCare To Tender 64% Stake In NovaCare Employee Svcs NORRISTOWN, Pa. (Dow Jones)--NovaCare Employee Services Inc. (NCES) agreed to sell the company to an investment group through a cash tender offer of $2.50 a share. In a press release Thursday, NocaCare Employee Services said NovaCare Inc. (NOV) agreed to sell its estimated 64% interest in the professional employer organization to the investment group. NovaCare Inc. agreed to tender its stake in the $2.50-a-share offer. The investment group is comprised of Patricof & Co., Ventures Inc., Fidelity Ventures Ltd. and Aflac Inc. (AFL). NovaCare Employee Services said it will merge into a new private company managed by the investors group. The tender offer for NovaCare Employees Services' 30.3 million fully diluted shares outstanding will commence on Sept. 15. The transaction, which is expected to close in October, requires NovaCare Inc. shareholder approval and is subject to other closing conditions. NovaCare Employee Services hired CIBC World Markets to render a fairness opinion on this transaction. NovaCare Employee Services said its President and Chief Executive Loren J. Hulber will be named chairman of the merged company. HR Logic Inc.'s chief executive Craig P. Coy will be named chief executive of the private company after the transaction is completed. HR Logic is jointly owned by Patricof and Fidelity Ventures. NovaCare Employee Services' operations will remain intact and the company will change its corporate name to NovaSource Inc. over the next six months. NovaCare Employee Services also said it terminated its contract to acquire Unified Management Corp. NovaCare had agreed in June to acquire Unified Management, a Chicago professional employer organization.