Compaq And Systech Sign Preferred Strategic Alliance Agreement.Business Editors TORONTO--(BUSINESS WIRE)--Sept. 26, 2001 Compaq Invests US$ 20.0 Million (C$ 31.4 Million) In Systech Convertible Preferred Shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. Systech Retail Systems Inc. today announced that it has entered into a Strategic Alliance and Sales Agreement with Compaq Computer Corporation (company) Compaq Computer Corporation - The largest US manufacturer and vendor of IBM PC compatible personal computers and servers. Compaq was started in 1982 by three ex-Texas Instruments employees. Quarterly sales $2499M, profits $210M (Aug 1994). http://compaq.com/. , wherein Compaq and Systech will become preferred partners in the development, delivery and support of retail technologies in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and elsewhere. In connection with their strategic alliance and partnership, Compaq, through an affiliate, made a US$20 million (approximately C$31.4 million) equity investment in Systech. Both companies will sell their jointly developed solutions in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Canada and provide seamless, single-contact support to their shared customers. The first jointly developed, co-branded solution will supplement existing proprietary point-of-sale systems with wireless, Internet, and in-store SQL SQL in full Structured Query Language. Computer programming language used for retrieving records or parts of records in databases and performing various calculations before displaying the results. database capabilities. Based on Systech-developed applications running Microsoft(R) Windows(R) 2000 on market-leading Compaq ProLiant servers, the new retail platform will complement existing POS (1) See point of sale and packet over SONET. (2) "Parent over shoulder." See digispeak. POS - point of sale systems to preserve customers' investments. Initially marketed in the United States and Canada, the companies will launch the new offerings in Australia, Germany, France, the Netherlands, Scandinavia, and the U.K. early in 2002. "The partnership between Compaq and Systech will bring retailers Compaq's global services reach, innovative capabilities in wireless and Web technologies, and enterprise server systems combined with Systech's store-systems software and specialized services", said Mike Winkler Winkler may refer to:
William Moore William Moore is also the name of:
"We are ready to take our offerings to the next level, and we are excited that our partnership with Compaq will help us realize this potential." The companies estimate the value of joint sales under this agreement at well over US$100 million over three years. In connection with the strategic alliance and partnership between Compaq and Systech, Compaq, through an affiliate, made a US$20 million (C$31.4 million) equity investment in Systech and acquired from Systech 1,174,947 Series C Convertible Preferred Shares of Systech on a private placement basis. Subject to certain adjustments, the preferred shares are convertible into common shares at a ratio of 10 common shares per preferred share and, subject to certain adjustments, a conversion price of C$2.65 per common share. At the current exchange ratio and conversion price, if converted the common shares underlying the preferred shares would represent approximately 25% of Systech's issued and outstanding common shares. Each preferred share will carry an annual cash dividend of 5%. Under certain circumstances, if not converted, specified levels of the preferred shares may be retractable re·tract v. re·tract·ed, re·tract·ing, re·tracts v.tr. 1. To take back; disavow: refused to retract the statement. 2. by Compaq after each of the second and third anniversaries of the date of the investment. The preferred shares will be redeemable by Systech after the fifth anniversary of the investment. In connection with the private placement of the preferred shares, Compaq entered into separate Lock-up Agreements Lock-Up Agreement A legally binding contract between the underwriters and insiders of a company prohibiting these individuals from selling any shares of stock for a specified period of time. with Systech Group Inc. and Park Avenue Equity Partners, L.P. under which Compaq has been provided with a right of first refusal Right of First Refusal In general, the right of a person or company to purchase something before the offering is made available to others. Notes: For example, a football team may have the right of first refusal on a player's contract. to purchase common shares held by Systech Group Inc. or Park Avenue Equity Partners, L.P. if either of them receives an acceptable offer to sell such shares to certain Compaq competitors. Systech will use the proceeds of the investment to reduce debt, strengthen working capital, and fund a Marketing Development Fund which will be used to promote the partnership. About Systech Based in Raleigh and Toronto, Systech offers a unique and comprehensive combination of retail technology, including software, systems and services, to large retailers throughout North America. Its StoreEnterprise open architecture software suite (O/S Migration, OpenField, RetailConnector and StoreCentral) enable e-commerce and other powerful new technology to be applied in the retail environment. The Company's significant cross-platform capability and 500-plus technical service force allow it to address any in-store systems requirement -- regardless of project size or scope. Information on Systech and its products and services is available at www.srspos.com. |
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