Vizacom Sells Its Software Operations Company to Receive $1,137,500 From Serif.
Vizacom Inc. (Nasdaq: VIZY) today announced that it has completed the sale of its software and visual communications operations.
Under terms of an agreement dated March 31, 2001, Vizacom has sold the entire issued share capital its Serif subsidiaries, its contact centers and the web site URL of VisualCities.com to the management of the Serif companies. Vizacom received part of the total payments of $1,137,500 from the Serif companies prior to closing and is entitled to receive the remainder over time.
Additionally, Serif will license the software products published by Vizacom's SPC subsidiary under SPC's "Harvard Graphics" and other brand names and will operate SPC's Harvard Graphics website. Vizacom also will receive a royalty on sales of SPC products and on Serif products sold under SPC brands.
"This transaction represents the culmination of the restructuring strategy the Company adopted in January 2001 to divest its visual communications (including software) and international operations to focus on its comprehensive professional Internet and technology solutions for the U.S. market. With the sale of these operations now complete, we intend to focus our energy, resolve and resources on further developing the core advantages of our Vizy Interactive business and enhancing its competitive position in the domestic market for professional Internet and technology solutions. We expect that the payments from Serif will provide a significant portion of our working capital requirements for the next twelve months. We look forward to concentrating on our core Vizy Interactive business and intend to establish positive cash flow from operations in the second half of the year, if we can overcome the current difficult economic and industry climate," said Vincent DiSpigno, president of Vizacom.
Vizacom Inc. (Nasdaq: VIZY) is a provider of professional Internet and technology solutions. Through its Vizy Interactive New York and Vizy Interactive-PWR Systems subsidiaries, Vizacom develops and provides leading companies with a comprehensive range of service and product solutions, including: business strategy formation; web interface design and branding; e-commerce and web-content management applications; creative media solutions; systems planning, development and integration; and data center services. Vizacom's clients primarily consist of established companies that seek to leverage technology to build stronger and more profitable businesses. The Company has formed long-term client relationships with several of the world's foremost companies: Computer Associates, Martha Stewart Living, SoBe Beverage, MTV Networks, Bozell Group (a True North Company), Simon & Schuster, Avon Products, Petrossian Paris, Schering-Plough and Sony Music. For more information, visit http://www.vizacom.com.
Matters set forth herein may include forward-looking statements involving risks and uncertainties that could cause actual results to differ. Potential risks and uncertainties include, but are not limited to, the market acceptance and amount of sales of the Company's Internet and technology solutions and computer products; the Company's ability to facilitate and support the growth of its core businesses; the Company's ability to integrate or coordinate the operations of its businesses; the Company's ability to hire, train, motivate and retain employees; the competitive environment within the Company's industries; economic conditions; and the Company's ability to raise additional capital. Investors are directed to consider other risks and uncertainties as discussed in documents filed by the Company with the SEC.