Computer Outsourcing Services to acquire third payroll company; acquisition supports COSI's strategy to create nationwide payroll processing company.NEW YORK--(BUSINESS WIRE)--Dec. 19, 1994, Computer Outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. Services, Inc. ("COSI COSI Center Of Science and Industry (Columbus, OH, USA) COSI Creative Outsourcing Solutions International (UK) COSI Cost of Savings Index COSI Closeout System Installation (NASA) ") (Nasdaq National Market: COSI), a payroll and data processing data processing or information processing, operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a services company, today announced that as part of its strategy to create a significant nationwide payroll processing company, it has signed a letter of intent to acquire a privately owned payroll processing services company. Management noted that the company to be acquired generated revenues in excess of $2,500,000 for its latest fiscal year ended May 31, 1994. The acquisition will be financed for an undisclosed amount of cash and stock and is expected to close within the next 60 days, subject to negotiation of a definitive purchase agreement and approval by COSI's Board of Directors. Further terms of the agreement were not disclosed. Regarding the acquisition, Zach Lonstein, COSI's President 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. , commented, "We are very excited about entering this agreement and further strengthening our presence in the payroll processing market. This is our third significant payroll acquisition to date and we are confident that it will be a natural fit to the existing group of companies in our payroll subsidiary. With the addition of this payroll business, we expect COSI's annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. revenues to reach a level in excess of $20,000,000 while the ongoing consolidation of our payroll operation will enhance future operating efficiencies." Lonstein continued, "Even as we work to complete this transaction, we remain in an aggressive acquisition mode and are encouraged by the attractive opportunities we are reviewing in the payroll market. These factors reinforce our commitment to becoming a leading force in the payroll processing industry." COSI provides payroll and tax filing services to approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 3,000 customers nationwide and offers other data processing services to companies in niche markets A niche market also known as a target market is a focused, targetable portion (subset) of a market sector. By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers. including publishing, direct marketing, apparel importing and manufacturing and health care. CONTACT: Computer Outsourcing Services, Inc.
Zach Lonstein, 212/564-3730
or
The Equity Group Inc.
Carolyn Bancone, 212/836-9604
Tamara Ehlin, 212/836-9607
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