IFCI news this AM. Charly even let me beat him to it. Thanks Charly.
International FiberCom to Acquire Midwest Telecommunications Equipment Group with $18 Million in Sales
PHOENIX--(BUSINESS WIRE)--July 22, 1998--
Acquisition Is Expected To Be Immediately Accretive To IFCI's Earnings Per Share
International FiberCom, Inc. (NASDAQ:IFCI) (BSE:IFC) and its Chairman and Chief Executive Officer, Joseph P. Kealy Wednesday announced it has signed a letter of intent to acquire a midwest based telecommunications equipment supplier and a separate sister inventory services and logistics company for a combined 2,350,000 shares of restricted common stock of the company.
The transactions will be accounted for as poolings of interests. The closings are expected to occur on or about Sept. 1, 1998 and are subject to the completion of comprehensive due diligence and the execution of definitive agreements.
On a preliminary unaudited basis, the target companies had combined sales of approximately $18,000,000 in fiscal 1997 and positive cash flow and profits.
The companies buy, sell and provide logistics and inventory management services to the original equipment manufacturers (OEM's) of telecommunications equipment, resellers of telecom equipment, the Regional Bell Operating Companies (RBOCS's), independent telephone companies and Competitive Local Exchange Carriers (CLEC's).
These are the third and fourth acquisitions that IFCI has announced in the telecom equipment sector. In June, IFCI announced its intent to acquire a telecom equipment supplier based in the mid-Atlantic region that recorded 1997 sales in excess of $12,000,000, which is scheduled to close on or about Sept. 1, 1998.
In December, 1997, IFCI completed the purchase of its first telecom equipment company, Southern Communications Products Inc. based in Florida. All three of the pending acquisitions will be integrated and operate as a division of the company's Telecommunications Equipment Group.
Kealy, CEO and chairman of IFCI stated, "These acquisitions, together with the previously announced pending telecom equipment acquisition in the mid-Atlantic, would make our Telecommunications Equipment Group a significant player in the fast growing niche secondary telecom equipment market in terms of its annualized sales, profits and market share.
"We intend to continue to strengthen our position within this niche through acquisitions and internal growth. These acquisitions will bring about economies of scale on both the selling and purchasing sides and provide access to new products, new customers, and the ability to offer new services. These acquisitions are expected to have an immediate accretive impact on our earnings per share."
International FiberCom is a fully integrated "one stop shopping" outsource provider for the telecom and CATV industries. Through its four subsidiaries, IFCI provides a range of high level engineering, broadband network systems design, installation of structured cable and fiber-optic networks and complete telecommunications systems integration services with LAN's and WAN's expertise.
Its Kleven Communications subsidiary specializes in the design, installation and maintenance of fiber-optic and other cable services for the telecommunications and cable industries. Its Tennessee based subsidiary, Concepts In Communications, provides systems integration services including design, engineering, installation and maintenance of structured cable systems, network hardware and software, workstation peripherals and intercommunications systems.
Concepts maintains value added reseller and/or partner agreements with Lucent Technologies, 3Com, Bay Networks, Novell, WIN Communications, BellSouth, Compaq and Hewlett Packard. Its telecommunications engineering subsidiary, Compass Communications, specializes in designing broadband video, voice and data networks systems. Southern Communications Products is a leader in a fast growing niche business within the telecommunications equipment sector.
Note to Editors: This press release contains "forward-looking statements" which are based largely on the company's expectations and are subject to various business risks and uncertainties, certain of which are beyond the company's control. These forward-looking statements are intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995.
Actual results could differ materially from these forward-looking statements as a result of such risks. In light of these risks and uncertainties, there can be no assurance that the forward-looking statements contained herein will in fact transpire or prove to be accurate. A more complete listing of cautionary statements and risk factors is contained in the company's reports filed on Form 10-KSB and Form 10-QSB with the Securities and Exchange Commission.
The company makes no commitment to disclose any revisions to forward-looking statements, or any facts, events or circumstances after the date hereof that bear upon forward-looking statements.
CONTACT:
International FiberCom Inc., Phoenix
Joseph P. Kealy, 602/941-1900
or
Liviakis Financial Communications Inc.
Robert Prag 916/448-6084 |
