DSYS bought again.
FARMINGTON HILLS, Mich., Jan 20, 2000 (BUSINESS WIRE) --
TekInsight.com (Nasdaq:TEKS), a provider of advanced Internet and
e-commerce products and solutions, and Data Systems Network Corporation
(OTCBB:DSYS), a leading provider of enterprise services, today jointly
announce that they have signed a letter of intent for TekInsight.com to
acquire Data Systems Corporation.
The letter of intent details the conditions to the completion of the
acquisition. The proposed transaction calls for Data Systems to be
merged into Astratek, Inc., a wholly owned and principal operating
subsidiary of TekInsight.com (the "Acquisition"). In consideration for
the Acquisition, Data Systems shareholders will receive a number of
shares of a new class of TekInsight.com convertible Preferred Stock
proposed to be listed on the NASDAQ Small Cap market that will have a
market value of between $12,500,000 and $18,000,000, with such value to
be based upon the market price of TekInsight.com Common Stock at the
time of the Acquisition closing. The Acquisition will give
TekInsight.com access to additional Fortune 1000 clientele, a sales
force and a help desk which will be critical components to rolling out
the Company's proprietary XML based products and services. This network
of accounts and relationships including 16 state and local government
agencies accounted for over $54 million in sales last year. The
Acquisition Agreement will be subject to the usual and customary
conditions to closing, including due diligence investigations,
authorizing votes by the shareholders of TekInsight.com and Data
Systems, satisfactory "fairness opinions" addressed to each of
TekInsight.com and Data Systems and execution of a definitive
Acquisition Agreement. Although no assurances can be given, the parties
intend to close the Acquisition by May 31, 2000.
"TekInsight.com has been using its resources to develop the technology
and methodology, especially around XML, to build robust, scalable
e-commerce applications, capable of sustainable high-volume transaction
rates. It is now time to expand its roll out to the marketplace. Data
Systems brings an infrastructure capable of supporting a $100 million
organization and a technical group experienced in Internet and Intranet
technologies. In addition, Data Systems's core business of serving
state and local governments should provide us with a receptive
clientele for our e-commerce capabilities," said Alex Kalpaxis,
Director and Chief Technology Officer of TekInsight.com.
"While Data Systems has been involved with Internet and Intranet
projects for its clients, TekInsight.com's technical capabilities will
allow us to provide a total enterprise solution in the e-commerce
marketspace," said Data Systems' CEO Michael Grieves. "TekInsight's
superior development capabilities in the Internet and e-commerce arena,
along with Data Systems' enterprise management, applications
development and network services will address a wide range of our
clients' technology needs. This will allow our clients to leverage the
investment they have previously made in infrastructure with the latest
e-commerce technology. We have already begun working with
TekInsight.com in addressing a few selected clients' Internet
requirements."
About TekInsight.com
TekInsight.com is a world-class XML Internet technology developer and
software engineering company. . The company's proprietary products
include various web-based diagnostic software agents and web-based
e-commerce performance and analysis tools. TekInsight.com is currently
using this expertise to build highly scalable web-based
e-commerce/portal sites. For more information on TekInsight.com visit
www.tekinsight.com.
About Data Systems Network Corporation
Data Systems Network Corporation, the Computer Associates 1999 New
Business Partner of the Year, has more than 13 years of experience
providing strategic technology solutions to Fortune 1000 companies and
over 16 state and local government agencies. The company provides a
wide range of services, including Applications Development, Network
Services, Enterprise Management, Help Desk and Security Services. To
learn more about Data Systems Network, please call (248) 489-8700 or
visit the company web site at www.datasystems.com.
Forward Looking Statements
This press release contains certain forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
which are intended to be covered by the safe harbors created hereby.
Investors are cautioned that certain statements in this release are
"forward looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995 and involve known and unknown
risk uncertainties and other factors. Such uncertainties and risks
include, among others, certain risks associated with the closing of the
transactions, government regulation, and general economic business
conditions. Actual events, circumstances, effects and results may be
materially different from the results, performance or achievements
expressed or implied by the forward-looking statements. Consequently,
the forward looking statements contained herein should not be regarded
as representations by Data Systems Network Corporation, or any other
person, the projected outcomes can or will be achieved.
Copyright (C) 2000 Business Wire. All rights reserved.
Distributed via COMTEX.
-0-
CONTACT: Data Systems Network Corporation
Michael Jansen, 248/489-8700 or 800/544-2086
mjansen@datasystems.com
or
TekInsight.com
Alexander Kalpaxis, 212/271-8520
alexkalpaxis@astratek.com
WEB PAGE: businesswire.com
GEOGRAPHY: MICHIGAN
INDUSTRY CODE: COMPUTERS/ELECTRONICS
NETWORKING
HARDWARE
SOFTWARE
INTERNET
E-COMMERCE
MERGERS/ACQ
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