PSIX formally commits to their $50 million investment:
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PSINet's Acquisition of Metamor Worldwide To Help Fuel Xpedior's Continued Growth
CHICAGO--(BUSINESS WIRE)--June 16, 2000--
Strategic Alliance, $50 Million Investment by PSINet To Accelerate
Xpedior's Global Expansion
Xpedior (TM)Incorporated (Nasdaq: XPDR), a leading provider of eBusiness services to global 2000 companies, said today it has signed an investment agreement with PSINet (Nasdaq: PSIX), the Internet Super Carrier., providing for a $50 million investment by PSINet in Xpedior. The companies also announced plans for a global business alliance which, together with the investment by PSINet in Xpedior, is expected to assist Xpedior in expanding its growth plans for 2000 and beyond.
The announcement follows today's closing of PSINet's acquisition of Metamor Worldwide, Inc. (Nasdaq: MMWW), which previously held an 80 percent interest in Xpedior. PSINet will now have 80 percent ownership of Xpedior, but will allow Xpedior to continue to operate as an independent company.
Under the terms of an agreement signed today, PSINet plans to invest $50 million in Xpedior through the purchase of convertible preferred stock that will have an initial conversion rate of $37.50 per share. Its is expected that the investment will close within 30 days. Xpedior expects the PSINet relationship to strengthen it status as an independent company by bolstering it financial position and accelerating its global expansion, both organically and through strategic acquisitions.
"We believe this investment, coupled with the strategic business relationship with PSINet, will significantly expand our growth plans in 2000 and beyond," said David Campbell, President and CEO of Xpedior. "The relationship highlights the global focus of both companies to deliver the industry's leading eBusiness applications and services to corporate and government customers. Xpedior's expertise in developing and deploying integrated eBusiness marketplaces, coupled with PSINet's planned global network of hosting centers, should prove to be a powerful combination."
"We view our investment in Xpedior as a key strategic relationship affording both companies an opportunity to strengthen their global enterprises," said Harold "Pete" Wills, President and COO of PSINet. "Together, we believe we can set a new standard for next-generation telecommunications and eBusiness solutions in the business-to-business sector worldwide."
Campbell said Xpedior has been rapidly expanding its network of offices and solutions centers as part of its growth plan, as well as aggressively recruiting new eBusiness consultants to serve its growing client base of more than 600 companies. The company now has approximately 1,500 employees located in 20 offices in the United States, the United Kingdom, Canada and Australia, including its newest office that opened today in San Jose, California.
About PSINet
Headquartered in Herndon, Va., PSINet is an Internet Super Carrier offering global e-commerce infrastructure and a full suite of retail and wholesale Internet services through wholly-owned PSINet subsidiaries. Services are provided on PSINet-owned and operated fiber, satellite, Web hosting and switching facilities providing direct access in more than 800 metropolitan areas in 27 countries on five continents. PSINet information can be obtained by e-mail at info@psinet.com, or by accessing their Web site at http:\\www.psinet.com or by calling 800-799-0676 in the U.S.
About Xpedior
Xpedior (Nasdaq: XPDR), an independent public company, provides innovative eBusiness solutions for Global 2000 companies, government, and emerging digital businesses. Xpedior helps its clients imagine new eBusiness capabilities, then delivers the reliable, scalable end-to-end solutions needed to bring them rapidly to market. Headquartered in Chicago, Xpedior has approximately 1,500 employees located in 20 offices in the United States, the United Kingdom, Canada, and Australia. Visit Xpedior at www.xpedior.com or call 1-877-XPEDIOR.
SAFE HARBOR
This press release contains a number of forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In particular, statements made concerning Xpedior's expected performance and financial results in future periods are based upon Xpedior's current expectations and beliefs and are subject to a number of known and unknown risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.
The following factors known to Xpedior, among others, could cause Xpedior's actual results to differ materially from those described in the forward-looking statements: Xpedior's continue to attract new clients and obtain new and expanded assignments from existing clients; Xpedior's ability to retain its personnel and continue to hire, train and efficiently utilize new employees; continued expansion of Xpedior's domestic and international operations and the successful integration of all of Xpedior's operations; continued robust growth in demand in the United States and abroad for eBusiness consulting services; and the effect of intensifying competition among a rising number of companies offering services similar to those offered by Xpedior. In addition, you are encouraged to review Xpedior's latest reports filed with the SEC, including Xpedior's Annual Report on Form 10-K filed with the SEC on March 30, 2000, which describes a number of additional risks and uncertainties that could cause actual results to vary materially from those expected in the forward-looking statements made in this press release.
CONTACT:
Xpedior
Dean Dranias, 312/251-3280
dean.dranias@xpedior.com
or
Ketchum
Bill Keegan, 312/228-6885
bill.keegan@ketchum.com
KEYWORD: ILLINOIS
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