ABR Information Services announces acquisition of Bullock Associates Inc.

PALM HARBOR, Fla.--(BUSINESS WIRE)--Dec. 15, 1995--ABR Information Services Inc. (NASDAQ:ABRX) announced Friday the acquisition of Bullock Associates Inc. (BAI).

BAI is a leading provider of various benefits administrative services for active and retired employees of Fortune 500 companies and other large employers. This acquisition provides ABR with an opportunity to add other benefits administrative services to its service offerings and to add to its existing core business of COBRA and retiree administration.

BAI's principal services include COBRA administration, retired employee insurance administration, insurance continuation billing and collection, pension benefits administration, Qualified Domestic Relations Orders (QDRO's) administration, and educational benefits administration.

In addition, BAI provides administrative services for various other employee benefits programs such as employee discount plans, adoption program administration, product rebates, and emergency loans.

"The acquisition of BAI will expand our position as a leader in COBRA and retiree administrative services and enhance ABR's entrance into the field of total benefits outsourcing through our new ABR National Service Center subsidiary," said James E. MacDougald, chairman and chief executive officer of ABR.

He added: "We are pleased to add to our organization a leading benefits administration service company who like ourselves serves the benefits outsourcing needs of employers. We welcome their dedicated management and employees as part of the ABR team."

ABR plans to operate BAI as a wholly owned subsidiary. W. Carl Bullock, BAI's president, chief executive officer and founder, will continue in his present role. Carl Bullock asserted: "We are excited about joining forces with ABR to realize the potential synergies of this combination. ABR has technological expertise and a large customer base, and we have a diverse service offering."

BAI, based in Princeton, N.J., with offices in Glenville, N.Y., is a privately held company. Founded in 1989, BAI has 125 employees. BAI's revenues were $8.2 million in calendar 1994 and are expected to be in excess of $9.0 million in calendar 1995.

Under the terms of the agreement, ABR acquired the stock of BAI for a total cash purchase price of $14.5 million, of which the payment of $2.0 million is contingent on BAI's attainment of certain revenue targets during calendar 1996 and 1997. Of the $12.5 million that is not contingent, $2.2 million was paid at closing, and the remaining $10.3 million will be paid in January, 1996. The acquisition will be accounted for using the purchase method of accounting.

"We believe that this acquisition will contribute to earnings per share in fiscal 1996 and has significant potential for future growth as we offer more services to our combined client base," said Vincent Addonisio, senior vice president and chief financial officer of ABR. He added: "BAI is a successful company with a strong management team. We believe their strategy complements ABR's."

Through its subsidiary, Applied Benefits Research Inc., ABR is a leading provider of health care benefits administration, information and compliance services relating to the continuation of health care coverage. The company markets its services based on proprietary software and compliance systems.

ABR currently services more than 19,000 employers and believes that it is the largest provider of COBRA compliance services in the United States. ABR's other main division, Benefits Billing Service, administers retirement benefits for a client company's former employees. ABR's customers include Fortune 500 and other employers in many industries.

CONTACT: ABR Information Services Inc., Palm Harbor

Vincent Addonisio, 813/785-2819