bob,
I think you will get it soon enough! :
Safeguard Scientifics Announces Merger of Intellisource and RMS Information Systems - Event Marks Safeguard's Largest Private Portfolio Consolidation
WAYNE, Pa., May 28 /PRNewswire/ -- Safeguard Scientifics, Inc. (NYSE: SFE - news), the New York Stock Exchange listed strategic information systems company, today announced the merger of the two largest privately-held companies in its portfolio. Effective June 1, 1998, Intellisource, Inc., a services integrator(TM) focused on providing integrated solutions for non-core, back-office support functions, and RMS Information Systems, Inc., an information technology solutions provider for government and commercial customers, will merge to become The Intellisource Group. Anticipated 1998 combined revenues are expected to be $150 million at a year-ending run rate of $250 million.
''The creation of The Intellisource Group is a major development for Safeguard because of the size of the resulting company and its breadth of services. Each of the companies, moreover, recognized the unique benefits of the other and the strength of the combination and approached us with the merger proposal,'' stated Warren (Pete) V. Musser, Safeguard Chairman and Chief Executive Officer. ''By combining two of our largest, private and fast growing companies, we are linking the business-processing outsourcing expertise of Intellisource with the IT excellence of RMS to create a unique value proposition as a service integrator.''
Intellisource, founded in October of 1995, is based in Fairfield, Connecticut. It had revenues of $3 million and $31 million in 1996 and 1997 respectively not including any revenue associated with a joint venture with Shell Services International. It has carved out and defined a new unique position as a services integrator focused on providing integrated solutions for non-core, back-office support functions. Its key clients include companies such as Shell Oil, Oglethorpe Power, Avon Products, IBM and AT&T. Its key operational hubs are located in Atlanta, Houston, New York and Washington, D.C.
RMS has a 20-year record of providing information technology solutions to both government and commercial customers. Specializing in telecommunications, desktop operations, network management and client/server technology, its clients include the FAA, NASA, Lucent Technologies, and Amtrak. Located in Vienna, Virginia, it brings over $90 million of annual revenues to the new company.
''This merger allows Intellisource to combine its unique business process outsourcing and marketing model with the operational and technical IT capability of RMS,'' said Charlie Gibbons, Intellisource founder and Chairman and CEO of the new combined entity. ''It enhances Intellisource's ability to offer a complete and integrated set of business solutions to clients.''
Mike Berta, currently CEO of RMS, will become President and Chief Operating Officer of The Intellisource Group. He added, ''Both companies have had the same vision with respect to customer service. The new combined company will possess a balance of commercial and federal business, providing our customers the benefit of best practices of each market. Our customers will gain the lessons we've learned from years of experience working in mission-critical operations, while deriving the efficiencies of working in competitive, bottom-line oriented businesses.''
Don Caldwell, President and Chief Operating Officer of Safeguard Scientifics said, ''As we have been investing in the fast growing outsourcing market, we believe that this merger will establish The Intellisource Group as a substantial leader in this market.''
Safeguard Scientifics, Inc. is a unique partnership of entrepreneurial companies focused on information technology markets. Safeguard has a proven track record of bringing emerging companies to market through rights offerings to Safeguard shareholders. Past Safeguard rights offerings include Novell, Inc., CompuCom Systems, Inc., Cambridge Technology Partners (Massachusetts), Inc., Coherent Communications Systems Corporation, USDATA Corporation, Integrated Systems Consulting Group, Inc., Sanchez Computer Associates, Inc., Diamond Technology Partners Incorporated, ChromaVision Medial Systems, Inc., OAO Technology Solutions, Inc. and DocuCorp International, Inc.
SOURCE: Safeguard Scientifics, Inc. |
