PROMIS SYSTEMS ACQUIRES PALETTE SYSTEMS INC.
TORONTO, April 12 /PRNewswire/ -- Promis Systems Corporation Ltd. today announced that it has completed its acquisition of the business of Palette Systems Inc. of Nashua, N.H. Promis also announced that the purchase price was reduced from the earlier estimate of US$11 million to approximately US$9.7 million consisting of cash and Promis common shares. The new company will be known as Palette Systems Corporation and will be managed as a wholly owned subsidiary of Promis Systems Corporation Ltd. Promis' president and chief executive officer, Elliot Wassarman, will also be president and chairman of the board of Palette. Dr. Michael McLean, Palette's prior president, has been appointed Palette's vice chairman reporting to Mr. Wassarman. Promis is the world's second largest developer of integrated plant floor management and manufacturing execution systems. Currently more than 1000 PROMIS software modules are installed in 17 countries at over 130 leading manufacturing sites. The PROMIS product suite helps solve manufacturing challenges including time to market, quality, competitiveness, regulatory compliance, productivity and customer service. The company is headquartered in Toronto with sales and marketing headquartered in San Jose, Calif. Promis has 12 sales and support locations throughout North America, Europe and Asia. Palette is recognized as the acknowledged industry leader in the market for computer integrated Quality Assurance documentation management systems. The company's software product is targeted to manufacturing segments where Quality Assurance is paramount (e.g. electronics, chemicals), and particularly where mistakes can threaten public safety (e.g. pharmaceuticals, aerospace, medical devices, etc.). Palette clients include 14 of the world's leading pharmaceutical producers and 10 of the world's largest aerospace electronics manufacturers. "We are very pleased to have completed this key acquisition as it will provide significant immediate growth and an important step in implementing our long term strategy to provide the most successful, cost-effective technology solutions for global manufacturers," said Mr. Wassarman. Promis recently reported 1992 revenues of US$14.5 million and pre- tax profits of US$2.1 million for its December year end. Palette, whose fiscal year ended Feb. 28, 1993 had revenues of US$6 million and pre-tax profits of US$1.7 million. Promis is a registered trade-mark of Promis Systems Corporation Ltd. Palette is a registered trade-mark of Palette Systems Corporation. -0- 4/12/93 /NOTE TO EDITORS: When referring to the company, please use Promis Systems Corporation Ltd. or Promis. When referring to the company's product, please use PROMIS in all caps. When referring to Palette, please use Palette Systems Corporation or Palette. When referring to the company's product, please use PALETTE in all caps. /CONTACT: Gordon Wilde, vice president-finance and chief financial officer, or Elliot Wassarman, president and chief executive officer of Promis Systems Corporation Ltd., 416-960-0960/
CO: Promis Systems Corporation Ltd.; Palette Systems Inc. ST: Ontario, New Hampshire IN: CPR SU: TNM
SM-OS -- NY053 -- 4799 04/12/93 13:21 EDT
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|Date:||Apr 12, 1993|
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