INTELLIGENT ELECTRONICS INKS STRATEGIC ALLIANCE WITH MAJOR CUSTOMER -- THE FUTURE NOW, INC.
INTELLIGENT ELECTRONICS INKS STRATEGIC ALLIANCE WITH MAJOR CUSTOMER -- THE FUTURE NOW, INC. EXTON, Pa., Feb. 18 /PRNewswire/ -- Intelligent Electronics Inc. (NASDAQ-NMS: INEL), today announced a strategic alliance with one of its major customers. Under the terms of an agreement in principle, Cincinnati-based The Future Now, Inc. (NASDAQ-NMS: FNOW) will acquire substantially all the assets of Intelligent's company-owned reseller centers in exchange for approximately 32 percent of The Future Now's common stock. According to Richard D. Sanford, chairman and chief executive officer of Intelligent, the alliance will mark the first step in an innovative strategy to create a highly efficient, nationwide network of systems resellers. "We plan to invest in our customers to form a major national force," he said. Based on pro forma 1991 results, the combined company would have revenues of approximately of $350 million. Sanford said he anticipates the alliance will have a positive effect on both companies' performance, resulting in greater cost-efficiencies and more rapid expansion. "Intelligent is in the large format retail and wholesale distribution business. The Future Now is in the systems reseller business. Teaming up will enhance both organizations' strategic focus and growth," he said. Terry Theye, president and chief executive officer of The Future Now, spoke enthusiastically about the alliance, "These acquisitions give The Future Now national presence and are designed to build upon our competitive position and further our rapid expansion plans. The synergies provided by these combinations should be significant in terms of revenue enhancement and cost savings." Theye indicated the strategic partnership reinforces The Future Now's franchise relationship with Intelligent, and he said the company plans to continue purchasing the majority of its products and services from Intelligent. The Future Now executive staff is expected to remain in place with the substantial majority of Intelligent Electronics' Company Center Division staff becoming employees of The Future Now. Said Theye, "Our relationship with Intelligent and its employees has been vital to our growth and profitability over the years. The addition of their talented staff will contribute significantly to our long-term success." The transaction is contingent on reaching a definitive agreement and the approval of The Future Now's shareholders. In addition, Intelligent said it is currently negotiating to purchase two other reseller companies with total 1991 revenues estimated at $100 million. If an agreement is reached, Intelligent will include the companies in The Future Now transaction, for additional consideration. Intelligent Electronics is a leading source of office productivity products. The company operates a retail and wholesale distribution network of more than 70 BizMart supercenters and 1,500 franchised and affiliated resellers in large cities and small towns across America. During its fiscal year 1991, the company achieved more than $1.9 billion in revenues and $38.2 million in earnings, growing revenues and earnings more than 30 percent year to year. Over the past five years, Intelligent's earnings have climbed at a compounded rate of more than 100 percent. During 1991, The Future Now reported sales of $139 million with $3 million in net income. The company, which currently operates 15 locations in 8 southern and midwestern states, will have a nationwide presence as a result of the transaction. /delval/ -0- 2/18/92 /CONTACT: Patrice W. Johnson of Intelligent Electronics, 215-458-6706/ (INEL FNOW) CO: Intelligent Electronics, Inc.; The Future Now, Inc. ST: Pennsylvania, Ohio IN: REA SU: TNM
KA -- PH003 -- 9764 02/18/92 09:09 EST
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|Date:||Feb 18, 1992|
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