SOFTWARE SPECTRUM ACQUIRES AUSTRALIA/NEW ZEALAND SUPPLIER OF PC SOFTWARE AND SERVICES.
"The Essentially Group acquisition is strategic in that it accelerates our leadership position as a worldwide provider of PC software and services." said Judy Sims, Software Spectrum's Chairman and Chief Executive Officer. "We've always kept a clear global vision for the Company, and having a presence in the Asia/Pacific marketplace has been a critical component of that plan. This acquisition provides us with an immediate presence and a solid base for our Pan-Asian expansion into this growing market."
Under the terms of the agreement, Software Spectrum purchased Essentially Group for approximately $9 million (subject to adjustment), including a combination of cash and Software Spectrum stock. Essentially Group's sales for the fiscal year ended March 31, 1996 are expected to exceed $45 million. Essentially Group is one of the largest Microsoft Select resellers in the Asia/Pacific region.
The two principals of Essentially Group, Gary McNabb and David Colvin, have joined Software Spectrum's overseas management team. These proven executives will provide continuing leadership in the Asia/Pacific operations and execute the Company's plans for expanding sales and marketing activities throughout the Asia/Pacific marketplace. Gary McNabb will manage sales and marketing for the Asia/Pacific region, and David Colvin will oversee the multi-lingual operations center in Sydney, Australia which will service customers throughout the region.
"Essentially Group and Software Spectrum have a common vision for success in the Asia/Pacific market," said Gary McNabb, founder of Essentially Group. "We believe the future lies in providing services that help large organizations successfully deploy their PC software strategies around the world."
The transaction provides Software Spectrum with immediate operations in Australia and New Zealand and a foundation from which to expand throughout the Asia/Pacific area. Essentially Group's customers will benefit from Software Spectrum's global presence, size, management expertise and considerable resources.
Software Spectrum is a leading supplier of microcomputer software and services to organizations. Focused on delivering the future of desktop software, Software Spectrum remains committed to providing superior customer service while maintaining a cost-efficient operating structure. The Company provides customers with a wide variety of business software products, volume software licensing services and technology support and assists them in the implementation, deployment, and ongoing support of their personal computing software strategies. Software Spectrum, with headquarters in Garland, Texas, has sales locations across North America, Europe, Australia and New Zealand. Software Spectrum's Technology Services Group has service locations in Atlanta, Chicago, Dallas, Houston, Los Angeles, Minneapolis, New York, San Francisco, and Toronto, and new locations in Europe, Australia and New Zealand. Software Spectrum stock is publicly traded on the NASDAQ stock exchange under the symbol SSPE.
CONTACT: Software Spectrum, Inc.
Judy Sims, Deborah Nugent or Katherin Dockerill,
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|Date:||Apr 1, 1996|
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