Some IFCI news:
International FiberCom Inc. Announces Intent to Acquire Florida-Based Telecommunications Equipment Company
PHOENIX--(BUSINESS WIRE)--Aug. 24, 1998--
Acquisition Is Expected To Be Immediately Accretive To IFCI's Earnings Per Share
International FiberCom Inc. (NASDAQ: IFCI; PHLX: IFC) and its Chairman and Chief Executive Officer, Joseph P. Kealy, Monday announced its intent to acquire a Florida-based telecommunications equipment company for 1,352,113 shares of restricted common stock of the company.
The transaction will be accounted as a pooling of interests and is expected to close in September, 1998. The closing is subject to the completion of comprehensive due diligence and the execution of a definitive agreement.
The target company designs, builds and installs the systems used in the central offices of the Regional Bell Operating Companies (RBOCS's), independent telephone companies and Competitive Local Exchange Carriers (CLEC's). It has been a customer of IFCI's Southern Communications Products Inc. subsidiary and will operate as a unit within the company's Telecommunications Equipment Group.
On a preliminary, unaudited basis, the target company had sales of approximately $8,350,000 in fiscal 1997. The acquisition is expected to be immediately accretive to IFCI's earnings per share.
Over the past few months, IFCI has announced three additional acquisitions for its Telecommunications Equipment Group. In June, IFCI announced its intent to acquire a mid-Atlantic based equipment supplier with 1997 revenues of $12 million in a pooling of interests transaction.
In July, IFCI announced its intent to acquire two mid-West based sister companies, a supplier and an inventory logistics company, with combined 1997 revenues of approximately $18 million. These transactions are intended to be accounted for as poolings of interests as well. IFCI acquired Southern Communications Products, its first entry into the equipment sector, in the fourth quarter of 1997.
Kealy stated, "This most recent acquisition will allow IFCI's Telecommunications Equipment Group to design, build and supply its customers with complete switching systems in addition to replacement parts and inventory services. With this acquisition and utilizing our extensive supply of secondary equipment, we will be able to provide package solutions to growing telecommunications networks.
"These solutions will be compatible with a variety of types of equipment utilizing older as well as state of the art technology and at competitive prices with favorable margins. All of the pending 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 and Riley Communications subsidiaries specialize 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.
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
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