AremisSoft Announces Acquisition of e-nnovations.com.NEW YORK--(BUSINESS WIRE)--Dec. 16, 1999-- Strategic Acquisition Rounds Out Internet Strategy e-nnovations.com Brings Web Design, Internet-Enabling and Talent Resources AremisSoft Corporation (Nasdaq: AREM AREM All-Random Easy Mode (gaming, Dota Allstars) AREM Avian Richness Evaluation Method ), a leading international supplier of software solutions for the manufacturing, hospitality, healthcare and construction industries, today announced the acquisition of e-nnovations.com, a leading supplier of Internet, workflow, other advanced technology software, applications and services. This acquisition is a key strategic milestone in AremisSoft's plan to address the rapidly expanding technologies and market opportunities brought on by the Internet. e-nnovations.com, located in Bangalore, India, and AremisSoft have been partnering for the past two years on modernizing efforts on the core AremisSoft enterprise applications. e-nnovations.com's technological capabilities have already been utilized in several large projects executed by AremisSoft in emerging markets. Effective immediately, the two companies will combine their respective operations and pursue new business opportunities. Under the terms of the agreement, AremisSoft acquired all of the outstanding shares of e-nnovations.com for $14.5 million in an all cash transaction. Inconjunction with the acquisition, AremisSoft expects to assign $13.8 million of the purchase price to goodwill and other intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. , including research and development and customer contracts. The goodwill and other intangible assets are expected to be amortized over a period of approximately three years, representing a non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. of $4.6 million per year. AremisSoft expects the acquisition will be non-dilutive to 2000 earnings (excluding the amortization and related charges). The acquisition enables AremisSoft to aggressively leverage the powerful and diverse technological capabilities of e-nnovations.com to create a broad base of enterprise and e-commerce applications. Offered on multiple platforms Refers to two or more operating environments, which typically include the CPU family and operating system. For example, if versions of a program run on Windows and the Macintosh, the software is said to support multiple platforms. with multiple delivery options, these applications include client server and application service provider (ASP) modes to best suit the needs of AremisSoft's expanding customer base. More specifically, the acquisition addresses AremisSoft's three-prong strategic plan of becoming a competitively strong ASP, expanding its presence in emerging markets and fueling future acquisition initiatives. "The acquisition of e-nnovations.com is a major step forward for AremisSoft because we can now leverage our vast array of software technologies, knowledge of advanced applications, and tremendous skill base to fast- forward our strategic initiatives as a solid ASP company," stated AremisSoft's founder 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. , Dr. Lycourgos Kyprianou. "We want to provide our customers with breakthrough advantages in e-business support that enable them to take advantage of the best that technology has to offer. Combining e-nnovations.com technology and application skills with our object-oriented enterprise applications will enable AremisSoft to offer a highly competitive and innovative array of product and service offerings, including Internet- based solutions, from which we anticipate significantly larger revenues." AremisSoft's President, Roys Poyiadjis, commented, "In addition to strengthening our position in the ASP space, the transaction further expands our presence in emerging markets, areas in desperate need of computerized computerized adapted for analysis, storage and retrieval on a computer. computerized axial tomography see computed tomography. automation but lacking technical infrastructure. We will now be able to install the most modern Internet e-business-based solutions on a turnkey See turnkey system. basis to these untouched and fragmented markets. We believe this to be an extremely large opportunity for AremisSoft to propel pro·pel tr.v. pro·pelled, pro·pel·ling, pro·pels To cause to move forward or onward. See Synonyms at push. [Middle English propellen, from Latin these untapped regions into 21st Century Internet technology. Importantly, this transaction ideally supports the execution of our geographic expansion objectives. "AremisSoft's position as a technological leader in Internet application software will give us opportunities to acquire less technologically advanced companies," continued Mr. Poyiadjis. "Many application software suppliers have limited resources to alter the architecture of their core systems to support the Internet and address the burgeoning product requirements necessary to enter the e- commerce market. The acquisition of e-nnovations.com gives us a competitive edge over such companies, and, accordingly, it also directly supports AremisSoft's overall acquisition strategy. "We've been working with e-nnovations.com developers for the past two years and are extremely impressed with the Company's high level of technical proficiency pro·fi·cien·cy n. pl. pro·fi·cien·cies The state or quality of being proficient; competence. Noun 1. proficiency - the quality of having great facility and competence , Internet capabilities and advanced software, and we look forward to inheriting in·her·it v. in·her·it·ed, in·her·it·ing, in·her·its v.tr. 1. a. To receive (property or a title, for example) from an ancestor by legal succession or will. b. 100 engineers and top management talent. Overall, e-nnovations.com's Indian location complements our existing R&D operation, so the acquisition will result in an efficient and seamless transition." In addition to addressing AremisSoft's core strategic business initiatives, the acquisition provides the technological presence and skill set to enhance the existing product offerings of each of AremisSoft's four divisions, and enables customers to access the Company's applications from a remote location. Customers will benefit from the following: - Manufacturing - Workflow enhancements will streamline business processes at small to medium-sized manufacturers. - Hospitality - Web-based portal for online reservations from small hotels will be available. - Healthcare - Solutions will offer administrative and clinical support for sole practitioners, delivered remotely through a Web browser browser Software that allows a computer user to find and view information on the Internet. The first text-based browser for the World Wide Web became available in 1991; Web use expanded rapidly after the release in 1993 of a browser called Mosaic, which used . - Construction - Internet-cased project management applications will be geared for use at construction sites. Planned new e-business capabilities include online sales configuration and support for XML based XML Base is a W3C recommendation, that proposes a facility for defining base URIs for parts of XML documents. XML Base recommendation was adopted on 2001-06-27. External links
e-commerce integration with third party system and integrated Web/telephony sales/support capabilities. Furthermore, AremisSoft intends to add e-commerce- enabled purchasing/ordering, supporting the Open Buying Initiative specifications, leveraging the XML XML in full Extensible Markup Language. Markup language developed to be a simplified and more structural version of SGML. It incorporates features of HTML (e.g., hypertext linking), but is designed to overcome some of HTML's limitations. development skills at e- nnovations.com. Computer-based training See CBT. (application) Computer-Based Training - (CBT) Training (of humans) done by interaction with a computer. The programs and data used in CBT are known as "courseware." for the AremisSoft portfolio is planned based upon multimedia technology. About AremisSoft Corporation AremisSoft develops, markets, implements and supports enterprise-wide applications software targeted at mid-sized organizations in the manufacturing, healthcare, hospitality and construction industries. The Company's software products help streamline and enhance an organization's ability to manage and execute mission-critical functions such as accounting, purchasing, manufacturing, customer service and sales and marketing. AremisSoft reported total revenue of $50.1 million for the nine months ended September 30, 1999 and net income of $6.6 million for the same period. AremisSoft has a total of 470 employees, with sales in 10 countries and a customer base in excess of 5,000. The Company also operates a software development and support facility in India, with 120 employees, which provides significant organizational efficiencies and cost advantages in software development and support. About e-nnovations.com e-nnovations.com, headquartered in Bangalore, India, is a supplier of advanced technology software and services. e-nnovations.com has a complete business operation with 120 employees, which include 100 software developers, as well as management, marketing, and support personnel. e-nnovations.com has approximately 450 customers primarily located in India, representing a broad a range of industries. Key customers include Indian Overseas Bank Indian Overseas Bank (established 1937) is a major bank based in Chennai (Madras), with 1,400 domestic branches and six branches overseas. History
Noun 1. ABB - an urban hit squad and guerrilla group of the Communist Party in the Philippines; formed in the 1980s , Digital Equipment India and India Tobacco Company. Most activities to date have been in customer Internet software, development and related e- commerce consulting. Revenue for 1999 is estimated at $3.0 million, with an operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. of $400,000. e-nnovations.com has been active in Internet software development utilizing advanced software technologies. Key areas of focus include Web development, workflow automation See workflow. , Internet Web hosting services A web hosting service is a type of Internet hosting service that allows individuals and organizations to provide their own websites accessible via the World Wide Web. Web hosts are companies that provide space on a server they own for use by their clients as well as providing , push technology, multi-media and graphical electronic commerce, Internet, Java, software development tool training, electronic books and technical manuals, computer based training and Web marketing. All development work is performed in Java and other Web-centric / advanced languages, supporting CORBA (Common Object Request Broker Architecture) A software-based interface from the Object Management Group (OMG) that allows software modules (objects) to communicate with each other no matter where they are located on a private network or the global , DCOM (Distributed Component Object Model) Formerly Network OLE, it is Microsoft's technology for distributed objects. DCOM is based on COM, Microsoft's component software architecture, which defines the object interfaces. RMI (Remote Method Invocation) A standard from Sun for distributed objects written in Java. RMI is a remote procedure call (RPC), which allows Java objects (software components) stored in the network to be run remotely. and XML. e-nnovations.com currently markets the Account21 fully Web-based accounting system. Cautionary Statement for Purposes of the "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. All statements, other than historical facts, included in the foregoing press release regarding the Company's financial position, business strategy, and plans of management for future operations are "forward- looking statements." These statements are based on management's beliefs and assumptions, and on information currently available to management. Forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. include, but are not limited to, statements in which words such as "expect," "anticipate," "intend," "plan," "believe," "estimate," "consider," or similar expressions are used. Forward-looking statements are not guarantees of future performance. They involve risks, uncertainties, and assumptions, including the risks discussed under "Risk Factors" in the Company's prospectus included in its registration statement on Form S-1, SEC File No. 333-58351, all of which are incorporated herein by reference. The Company's actual results may differ materially from those anticipated or expressed in these forward-looking statements. Many of the factors that will determine these results and values are beyond the Company's ability to control or predict. Readers of this press release are cautioned not to put undue reliance on any forward- looking statement. The Company undertakes no obligation to publicly update these forward-looking statements, whether as a result of new information, future events or otherwise. -0- -CONFERENCE CALL DETAILS TO FOLLOW- NOTICE OF CONFERENCE CALL FOR AremisSoft Corporation (NASDAQ: AREM) Friday, December 17, 1999 9:00 a.m. Eastern Time Management of AremisSoft will conduct a conference call with analysts and institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. to discuss the acquisition of e-nnovations.com and other new developments at AremisSoft. Please contact Cathy Dawson at Morgen-Walke Associates to reserve a line for this call: cdawson@morgenwalke.com or 212-850-5679. The direct dial number for domestic callers is 888-882-0141. The direct dial number for international callers is 212-346-7499. If you are unable to participate in the conference call, a replay will be available. To access the replay, please dial (858) 812-6440 and use the passcode "13867586" from approximately one hour after the end of the call until 11:59 p.m. Eastern Time on Monday, December 20, 1999. Thank you for your interest in AremisSoft. |
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