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Technology Stocks : Y2K (Year 2000) Stocks: An Investment Discussion -- Ignore unavailable to you. Want to Upgrade?

To: Risky Business who wrote (9807)	3/2/1998 5:51:00 PM
From: BM	Read Replies (3) \| Respond to of 13949

Cognicase acquires Hexagon Computer Systems MARCH 2, 1998 COGNICASE Inc. to Acquire Hexagon Computer Systems Inc. - Expands Geographic Position to Ottawa, Toronto, Boston, San Francisco and Sydney, Australia MONTREAL, QUEBEC--COGNICASE Inc. announces its intention to acquire Hexagon Computer Systems Inc., a systems integrator and information technology consulting firm with revenues of approximately US$10.5 million for fiscal 1997. The transaction, which will be accounted for as a purchase, is expected to close later this week, and provides for a cash consideration of US$4.9 million and the issuance of 255,044 common shares of COGNICASE. "The key to this acquisition is that it extends our physical presence into several major North American business centres while expanding the potential base of large corporate and government sector customers for our software solutions," said Ronald Brisebois, President and Chief Executive Officer of COGNICASE. Hexagon employs 160 people through offices in Ottawa and Toronto, respectively the capital city and financial centre of Canada, Boston and San Francisco, as well as Sydney, Australia. Among its major customers are Correctional Services Canada, Analog Devices, Lafarge Cement, Molson Breweries, JLW Pty. Ltd. and Pepsi Cola. "Hexagon adds new sales channels, provides for interesting cross- selling opportunities and increases our critical mass for the development of non-year 2000 related revenues using COGNICASE software tools and processes," added Mr. Brisebois. "Its know-how in data warehousing and enterprise intelligence, workflow simplification and systems solutions is strongly complementary to the operations of COGNICASE. Moreover, Hexagon employees share the COGNICASE commitment to quality solutions, teamwork and the creation of shareholder value." "This acquisition marks further progress in our strategy to build COGNICASE into a total solution-oriented organization by combining powerful automated software tools and high-quality services," concluded Mr. Brisebois. Bruce Ladouceur, President and Chief Executive Officer, of Hexagon stated: "As part of the COGNICASE organization, we have gained access to world class systems modernization technology. This significantly enhances Hexagon's position to differentiate its services from those of other systems integrators." COGNICASE and its subsidiaries provide integrated value-added software solutions and consulting services, differentiated by their industry-leading toolsets and processes for automated systems modernization and platform migration. The Company's flagship product is COGNI-2000, a comprehensive, flexible software toolset for Year 2000 compliance introduced in 1994. This news release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (US), which involve risks and uncertainties. The Company's actual results may differ significantly from the results discussed in such statements. Certain factors that could cause actual results to differ materially from those discussed in such forward- looking statements include the ability of the Company to (i) successfully integrate business acquisitions (ii) take advantage of opportunities on the Year 2000 market in the short term and (iii) provide software maintenance and platform migration solutions outside the Year 200 market, as well as the risks described in the Company's final prospectus dated October 2, 1997 filed with the SEC, the OSC and QSC in connection with its Public Offering, which factors are incorporated herein by reference.