DecisionOne to purchase the assets of the U.S. service business of Memorex Telex.FRAZER, Pa.--(BUSINESS WIRE)--Nov. 1, 1996--DecisionOne Holdings Corp. (Nasdaq: DOCI) announced that the Company has entered into a definitive agreement to purchase the assets of the U.S. service division of Memorex Telex Corporation, following Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. proceedings held yesterday. DecisionOne will purchase the assets for approximately $30 million in cash, subject to adjustment, and assume certain liabilities related to customer maintenance contracts. The transaction is subject to regulatory approval. Headquartered in Irving, Texas Irving (pronounced 'er-ving') is a city located in the U.S. state of Texas within Dallas County. According to the 2000 U.S. Census, the city population was 191,615; the 2006 estimate was 201,927 according to the North Central Texas Council of Governments, and 196,084 according to , Memorex Telex Corporation supplies a full range of value-added services A value-added service (VAS) is a telecommunications industry term for non-core services or, in short, all services beyond standard voice calls and fax transmissions. for networks and for information storage, including extensive data center capabilities, network development and management services, hardware maintenance and technology support. The U.S. service operation currently generates in excess of $100 million in annual revenues and provides service from 106 locations. Steven J. Felice, President of DecisionOne, noted, "The customer and service base of Memorex Telex is an ideal fit for our business. They do what we do -- maintain computer hardware, support communications networks and operate help desks. They provide those services to the same markets we serve, in some cases even to the very same customers. In addition to expanding our customer base, this acquisition adds to the density of our marketplace presence, a critical component in operational efficiency and fast, accurate customer service." Commenting on the acquisition, Ken Draeger, Chief Executive Officer of DecisionOne, remarked, "Acquisitions are a key part of our growth strategy and we are extremely pleased with this one. Because of the close overlap in our core businesses and in our target markets, we have been pursuing Memorex Telex for more than a year. Acquisitions like this not only strengthen us operationally, they advance our strategic interests as well. We look forward to welcoming Memorex Telex people to the DecisionOne team and to impressing their customers with our service." DecisionOne is the largest independent provider of multivendor computer maintenance and technology support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services 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. . The Company provides support for a broad range of computing environments, from the data center to the desktop. DecisionOne supports in excess of 15,000 hardware products from more than 1,000 original equipment manufacturers, as well as more than 150 shrink-wrapped software Refers to store-bought software, implying a standard platform that is widely supported. applications. This press release contains, in addition to historical information, 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. that involve risks and uncertainties. These include statements regarding the Company's growth and expansion plans. Such statements are based on management s current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Factors that may cause such a difference include, but are not limited to, those described under Risk Factors in the Company's Annual 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 June 30, 1996. CONTACT: DecisionOne Holdings Corp., Frazer Thomas J. Fitzpatrick, CFO See Chief Financial Officer. , 610/296-6200 or Morgen-Walke Associates, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Betsy Brod/Alex Gleeson Media Contact: Stan Froelich 212/850-5600 |
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