Printer Friendly

CWE SIGNS LETTER OF INTENT TO MERGE

 DENVER, Aug. 25 /PRNewswire/ -- CWE Inc. (NASDAQ: CWEX) announced today that it has signed a letter of intent to merge with Lawrence, Kan.- based Connecting Point Computer Center. In the proposed merger, Connecting Point Computer Center will become a wholly owned subsidiary of CWE. Completion of the merger is subject to certain conditions, including the execution of a definitive merger agreement and an increase in the authorized shares of CWE, which will be requested at CWE's annual meeting of shareholders to be held later this year.
 Connecting Point Computer Center is one of the oldest Connecting Point franchisees. Connecting Point Computer Center sells products and services to small and medium sized businesses, to large corporate accounts, and is the largest education computer installer in Kansas and Western Missouri. The 10 year old company achieved approximately $6 million in sales and $350,000 in earnings in 1992 (unaudited). The merger, which is valued at $1,750,000, will include cash of $500,000 and 312,500 shares of common stock of CWE, of which 62,500 shares will be escrowed against future earnings criteria.
 Connecting Point Computer Center was founded in 1982 by its principals, Myles Schachter and Dr. Rhonda Ross. Connecting Point Computer Center will continue to be operated by Schachter and Ross under the firm's current name. Gregory Kinnear, president and chief executive officer of CWE, commented, "I believe that both CWE and Connecting Point Computer Center will benefit substantially from the proposed merger. Today, sales volume is a key factor determining profitability of computer resellers. By combining operations, both companies will be able to obtain larger discounts from vendors for higher volume purchases. We believe the merger will enhance the competitiveness of CWE and Connecting Point Computer Center while providing high quality products and services to their customers." Kinnear also noted that CWE will benefit from the specialized expertise of Connecting Point Computer Center management, especially in the education market.
 Connecting Point Computer Center began as an outgrowth of the municipal consulting services they provided to area cities and counties. After developing several computer master plans for these communities, the firm became an IBM reseller to serve the microcomputer needs of these clients. In 1984, Connecting Point Computer Center opened its retail location in Lawrence to provide its consulting/selling approach to the general public.
 Connecting Point Computer Center expanded its market from local government and retail in 1987 to include the education market. The firm became an IBM Education Specialist which afforded them the opportunity to provide a wide range of solutions to this market. By 1992, Connecting Point Computer Center had became the second largest IBM education dealer in the nation. In this capacity, Connecting Point Computer Center has installed thousands of computers on hundreds of networks in schools in Kansas and Missouri.
 CWE conducts business operations through its subsidiaries, CW Electronics, located in Denver, Computer Systems Inc., an Omaha, Neb.-based computer reseller, and PC Performance Center, located in Denver. Each of these subsidiaries provides high quality, name brand products sold and serviced by well qualified and properly trained sales and service personnel with an emphasis on customer satisfaction.
 -0- 8/25/93
 /CONTACT: Gregory Kinnear of CWE, 303-866-9799, ext. 107; or Melissa Whitney, Investor Relations, 303-791-3154 or 303-866-9799, ext. 310/
 (CWEX)


CO: CWE Inc.; Connecting Point Computer Center ST: Colorado, Nebraska; Kansas IN: CPR SU:

MC-BB -- DV004 -- 0361 08/25/93 12:58 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Aug 25, 1993
Words:570
Previous Article:CMS ENERGY CLOSES DEBT RESTRUCTURING OF CONNECTICUT PLANT
Next Article:ODETICS INTRODUCES ADAPTIVE COLOR VIDEO TRANSMISSION FOR STANDARD TELEPHONE LINES
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters