Applied Digital Solutions Completes CDN$70 Million Sale of TigerTel to AT&T Canada.Business Editors/High Tech Writers PALM BEACH, Fla.--(BUSINESS WIRE)--Jan. 3, 2000 Applied Digital Solutions, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ADSX) today announced the completion, on December 30, 1999, of the sale of its approximately 4.9 million shares in TigerTel Inc., its Toronto-based telecommunications subsidiary, to AT&T Canada, first announced on November 29, 1999. Under AT&T's offer, approximately 7.3 million (approximately 96.7%) of TigerTel's 7.5 million outstanding shares were tendered to AT&T at CDN (Content Delivery Network) A system of distributed content on a large intranet or the public Internet in which copies of content are replicated and cached throughout the network. $9.25 per share ($6.36 US). In addition, AT&T Canada agreed to refinance TigerTel's approximately CDN$10 million in debt provided under Applied Digital Solutions Term and Revolving Credit Agreement Revolving credit agreement A legal commitment in which a bank promises to lend a customer up to a specified maximum amount during a specified period. revolving credit agreement See line of credit. . "The sale of TigerTel will help us accelerate our transformation of ADS into a single source e-business to business solutions provider in the United States," said ADS Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Richard J. Sullivan. "The sale will help us focus our core businesses on the enormous growth opportunities available in the U.S. market." Sullivan noted that ADS has sharpened its strategic focus on web-based applications development, networking services, Internet telephony integration and leading-edge IT solutions and services. "Given our e-business strategic focus, TigerTel simply fit more appropriately into AT&T's Canadian operations," he said. About TigerTel Inc. TigerTel provides corporate clients across Canada a variety of telecommunications services including telecommunications management, call center, voice messaging and various toll and data services. TigerTel achieved revenues of nearly CDN$19 million for the third quarter of 1999, while EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
About Applied Digital Solutions, Inc. Applied Digital Solutions, Inc. is an e-business to business solutions provider offering Internet, telecom, LAN (Local Area Network) A communications network that serves users within a confined geographical area. The "clients" are the user's workstations typically running Windows, although Mac and Linux clients are also used. and software services to a wide variety of businesses throughout North America. For more information, visit the Company's web site at http://www.adsx.com . Statements about the Company's future expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are `forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act of 1995. The Company intends that such forward-looking statements involve risks and uncertainties and are subject to change at any time, and the Company's actual results could differ materially from expected results. The Company undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances. |
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