TORONTO, Oct. 5 /PRNewswire-FirstCall/ -- Softchoice Corporation (TSX:SO), a leading North American provider of technology products and services, today announced that it has entered into a Purchase and Sale Agreement to acquire the products division of Toronto-based NexInnovations Inc. This transaction is subject to court approval and normal regulatory approval.
Under the terms of the Agreement, Softchoice is paying $10 million to acquire the assets associated with the NexInnovations product business. This includes customer relationships and records along with certain assets. Softchoice will be hiring key employees associated with supporting these customer relationships.
"This acquisition provides Softchoice with an exceptional opportunity to add to our enterprise customer base here in Canada," noted David MacDonald, President and CEO of Softchoice. "I am looking forward to forging stronger and deeper relationships with each of these customers as we demonstrate the immediate value that Softchoice can bring to bear in helping them to select, acquire and manage their information technology resources."
Based on the trailing 12-month gross revenue of approximately $200 million attributable to this business, Softchoice estimates that this transaction will be accretive to its shareholder value in 2008. Funding for the transaction will be provided from Softchoice's current credit facility.
Established in 1978, NexInnovations has grown to become a foremost provider of information technology infrastructure and consulting services to leading Canadian enterprise customers.
About Softchoice Corporation
As one of North America's leading providers of technology products and services, Softchoice helps businesses and organizations of all sizes to select, acquire and manage their software and hardware technology resources. Softchoice offers a full range of capabilities, including face-to-face consultations and IT asset management services designed to help customers save time, money and risk in IT procurement. In 2006, Softchoice was named Software Value Added Reseller (VAR) of the Year by VAR Business magazine. Softchoice currently has 624 employees operating from more than 30 branch offices located in major cities across the U.S. and Canada. Softchoice stock is listed on the Toronto Stock Exchange (TSX) under the trading symbol "SO." The common shares of Softchoice are not registered under the U.S. Securities Act of 1933 and are not publicly traded in the United States.
This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements relate to, among other things, plans and timing for the introduction and enhancement of our services, and other expectations, intentions and plans contained in this press release that are not historical fact. When used in this press release, the words "anticipate," "expect" and similar expressions generally identify forward-looking statements. These statements reflect our current expectations and are subject to a number of risks and uncertainties including, but not limited to, change in technology and general market conditions, many of which are set out or incorporated by reference in the Company's latest Annual Information Form. Due to the many risks and uncertainties, Softchoice cannot assure that the forward-looking statements contained in this press release will be realized.
