Wareforce Inc. Finalizes Acquisition of Kennsco Inc.; Deal Expected To Significantly Expand Wareforce's Technical Service Capabilities, Adds $20 Million to Its 1999 Revenues.LOS ANGELES--(BUSINESS WIRE)--March 24, 1999--Wareforce.com, a single-source provider of information technology (IT) and technical services for government, higher education higher education Study beyond the level of secondary education. Institutions of higher education include not only colleges and universities but also professional schools in such fields as law, theology, medicine, business, music, and art. and business, has finalized See finalization. its acquisition of Kennsco Inc., a Minneapolis-based technical services company. Announced in February, the transaction consisted of a combination of cash, restricted stock and assumption of liabilities. Kennsco's revenues for 1999 are forecast at $20 million and its EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become at $1 million. Wareforce believes that the move will strengthen its position as a technical services provider. Kennsco holds technical service contracts in Florida, Minnesota, Illinois and seven other Midwestern states. The acquisition greatly expands Wareforce's offerings in the state of Florida, where Wareforce holds an exclusive Microsoft Select product contract for government and higher education users. The transaction also gives Wareforce.com ownership of Kennsco's leasing division, which expands the company's ability to lease computer equipment directly to the end-user. Kennsco will now operate as a division of Wareforce Inc. Kennsco's president, Ken Searl, will join Wareforce.com as a vice president, and Wareforce as vice president of its Kennsco division. The Kennsco acquisition is consistent with Wareforce.com's growth strategy of acquiring companies with e-commerce capabilities or substantial technical service components that generate recurring revenues. Recent acquisitions include C.Y. Investment Inc. (d.b.a. IMPRES IMPRES Improvement of Methods for Producing Real-Time Embedded Software (ESPRIT Project 10043) Technology and Advanced Optical Distribution) in September, a move that helped grow Wareforce.com's professional staff to nearly 200 and its annual pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma revenues to more than $130 million. Wareforce is one of only 26 large account resellers of Microsoft products in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and provides sales agent staffing service to Apple Computer. Wareforce.com is listed in Standard & Poor's corporate records, and has approximately 11 million shares issued and outstanding. The company expects to file for listing on the Nasdaq National Market System upon completion of its 1998 year-end audit, currently being conducted by Arthur Anderson Arthur Anderson may refer to:
Wareforce.com is on the World Wide Web at www.wareforce.com. This news release contains certain 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 that could cause actual results to differ materially from these forward-looking statements. Readers are cautioned to consider these risks and uncertainties and not to place undue reliance on forward-looking statements. |
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