CompuCom Purchase of MicroAge Technology Services Approved.Business Editors/High-Tech Writers TEMPE, Ariz.--(BUSINESS WIRE)--Dec. 21, 2000 MicroAge Inc. Thursday announced a definitive agreement to sell the assets of MicroAge Technology Services, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , to CompuCom Systems Inc. (Nasdaq: CMPC CMPC Classified Matter Protection and Control CMPC Compañia Manufacturera de Papeles y Cartones S.A. CMPC Cisco Multi-Path Channel CMPC Children's Media Policy Coalition CMPC Central Milk Producers Cooperative CMPC Connecticut Minority Purchasing Council ), a digital infrastructure solutions provider. CompuCom emerged as the successful bidder in a court auction to sell the assets of MicroAge Technology Services through competitive bidding Competitive bidding A securities offering process in which securities firms submit competing bids to the issuer for the securities the issuer wishes to sell. competitive bidding 1. procedures under Section 363 of the U.S. Bankruptcy Code Bankruptcy Code may refer to:
Under the agreement, CompuCom will pay MicroAge Inc., approximately $96 million and will acquire the assets of MicroAge Technology Services, LLC. After adjustments such as transaction fees, accrued expenses Accrued Expense An accounting expense recognized in the books before it is paid for. It is a liability, usually current. These expenses are typically periodic and documented upon a company's balance sheet due to the high probability of collection. , and cure payments, the sale is expected to have a value of approximately $85.5 million. MicroAge Technology Services provides technology infrastructure services and technology deployment for mid- and large-sized organizations across 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. . MicroAge Inc., will continue to operate Pinacor Inc., a data communications data communications, application of telecommunications technology to the problem of transmitting data, especially to, from, or between computers. In popular usage, it is said that data communications make it possible for one computer to "talk" with another. company; Quality Integration Services, LLC, a custom integrator for light manufacturing; and Eleris, a B2B (Business to Business) Refers to one business communicating with or selling to another. See B2B e-commerce, B2C and B2G. B2B - business to business electronic procurement solutions integrator. All are based in Tempe. "The sale of MicroAge Technology Services to CompuCom positions the company to continue to provide superior services to clients without interruption, while offering significant value for creditors," said MicroAge Inc. Chairman and Chief Executive Officer Jeffrey D. McKeever. "Through this process, we have been able to obtain maximum value for MicroAge Technology Services -- underscoring the value of an organization built through the efforts of hard-working and dedicated MicroAge associates. We have also taken a significant step toward providing a better recovery in the company's voluntary Chapter 11 case," McKeever concluded. On April 13, 2000, MicroAge and certain of its subsidiaries commenced a voluntary Chapter 11 proceeding in order to facilitate the restructuring of its business. MicroAge Technology Services LLC was one of the named subsidiaries in the proceeding. About MicroAge Inc. MicroAge Inc. provides B2B technology solutions and infrastructure services. The corporation is composed of information technology businesses, delivering ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. 9001-certified, multi-vendor integration services and solutions to large organizations and computer resellers. The company does business in more than 20 countries and offers over 250,000 products from more than 1,000 suppliers backed by a suite of technical, financial, logistics and account management services. More information about MicroAge is available at www.microage.com. Certain statements contained in this press release may be "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. " within the meaning 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. These forward-looking statements may include projections of revenue and net income and issues that may affect revenue or net income; projections of capital expenditures; plans for future operations; financing needs or plans; plans relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the company's products and services; and assumptions relating to the foregoing. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking information. Some of the important factors that could cause the company's actual results to differ materially from those projected in forward-looking statements made by the company include, but are not limited to, the following: the company's ability to finance product procurement; intense competition; narrow margins; dependence on supplier incentive funds; product supply and dependence on key vendors; potential fluctuations in quarterly results; risks of declines in inventory values; the capital intensive nature of the company's business; dependence on information systems; dependence on independent shipping companies; rapid technological change; and the company's status as a debtor-in-possession under the Bankruptcy Code. The company undertakes no obligations to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In addition, please refer to Part II, Item 7 to the company's Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended Oct. 31, 2000 and Item 2 in the company's most recent 10-Q for a discussion of some of the important factors that could cause the company's actual results to differ materially from those projected in forward-looking statements made by the company. |
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