EMPLOYEE SOLUTIONS INC. ANNOUNCES ACQUISITION OF PRO PAY INC.
PHOENIX, Sept. 24 /PRNewswire/ -- Employee Solutions Inc. (NASDAQ: ESOL) announced today it has reached an agreement in principle to purchase all of the outstanding stock of Pro Pay Inc. ("Pro Pay"), an Arizona employee leasing company, for $420,000 in cash and 168,000 shares of the company's unregistered common stock. The purchase price may be revised upwards or downwards based upon certain financial results of Pro Pay for the 12-month period ending Sept. 30, 1994. The agreement is contingent upon execution of a definitive acquisition agreement and approval by the board of directors of each company. Pro Pay has approximately 500 leased employees and annual gross revenue of over $7,000,000. Pro Pay's gross profit is expected to exceed $420,000 for the 12 months ending Sept. 30, 1994. The company has agreed to guarantee a market value of $5 per share for up to the 168,000 shares to be issued in connection with the acquisition. The $5 per share guarantee may be adjusted downward based on a formula, if Pro Pay's gross profit is less than $420,000 for the years ending Sept. 30, 1994 and 1995. After the acquisition, the company will have combined annualized gross revenues of approximately $60,000,000. Employee Solutions Inc. is a staff leasing company providing solutions to small and mid-sized companies for lower cost and more comprehensive benefit packages, payroll administration, workers' compensation and flexible health insurance programs tailored to the needs of the client. -0- 9/24/93 /CONTACT: Todd P. Belfer, VP, 602-955-5556/ (ESOL)
CO: Employee Solutions Inc.; Pro Pay Inc. ST: Arizona IN: SU: TNM
NY-LS -- LA007 -- 5434 09/24/93 12:50 EDT
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|Date:||Sep 24, 1993|
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