Rom Tech completes merger with Virtual Reality Laboratories Inc.
Under the terms of the merger agreement, shareholders of VRLI were issued approximately 1.35 million shares of Rom Tech common stock.
According to Rom Tech chairman Joe Falsetti, the strengths of the combined company demonstrates one reason for the rapid consolidation of the software development business through a wave of mergers and acquisitions. Regarding the Rom Tech/VRLI merger, Falsetti cited three competitive advantages which he believes the transaction will produce.
"First," he said, "through VRLI, we have added application software to our core business of developing and distributing multimedia software." Falsetti said that while multimedia software is in demand, we believe that application software, specifically personal productivity programs, command higher retail prices and develop more loyal user bases.
He added that the addition of VRLI's FormWizard product broadens the Rom Tech product line in the critically important and rapidly expanding small office/home office (SOHO) market.
According to Falsetti, FormWizard, which has been received with enthusiasm among customers during its initial release, represents the first of several products in what will be known as theWizardWare suite of personal productivity tools.
Second, Falsetti said, the merger should significantly enhance Rom Tech's product line. "With the fragmented nature of software distribution channels, a diversified product line should help us to achieve increases in sales volume."
He noted that while Rom Tech has been focused in edutainment and education markets, Virtual Reality's products have targeted the market for leading edge scientific and astronomy related software. "The use of Virtual Reality's Vision of Mars software at the MIR space station by the U.S. and Russian astronauts offers testimony to the company's leadership position in this niche." And combined, both companies have produced a powerful line of personal productivity applications led by FormWizard.
"Third," reported Falsetti, "our merger with VRLI creates a deeper pool of talent in management and application development." He added that VRLI's locale in California would also provide the company access to creative, leading edge talent as it grew and expanded.
Finally, Virtual Reality president Lance Woeltjen said that the merger creates new marketing opportunities. "Historically, VRLI has had strong ties to Japan and the Pacific Rim, while Rom Tech has been very effective in the U.S. and Europe. We see a real opportunity to cross-pollinate the product lines."
The statements in this press release relating to matters that are not historical are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those anticipated, including, but not limited to, general economic conditions affecting the demand for multimedia software, the successful integration of the combined Rom Tech and VRLI, business, the development, introduction and market acceptance of new products and access to distribution channels.
These risks and uncertainties are described in reports and other documents filed by the company with the Securities and Exchange Commission.
RomTech, located in Langhorne, is a re-seller, developer and publisher of multimedia software on CD-ROM disks for consumers, educational and business applications. The company, formed in 1992, went public during the fall of 1995. RomTech seeks growth through new distribution agreements, additional product development and acquisitions.
For further information, contact: Joe Falsetti, Rom Tech, 215/750-6606, Ext. 114 or email@example.com.
CONTACT: Rom Tech, Langhorne
Joe Falsetti, 215/750-6606, Ext. 114
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|Date:||Apr 8, 1996|
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