SAZTEC INTERNATIONAL INC. ANNOUNCES ACQUISITION OF ASSETS AND BUSINESS OF SCANNING AMERICA INC.
SAZTEC INTERNATIONAL INC. ANNOUNCES ACQUISITION OF ASSETS AND BUSINESS OF SCANNING AMERICA INC. KANSAS CITY, Mo., April 3 /PRNewswire/ -- SAZTEC International Inc. (NASDAQ: SAZZ) of Kansas City today announced that it has acquired the assets and business of Scanning America Inc. of Lawrence, Kan. Terms of the acquisition were not disclosed. Both companies are engaged in the service of converting information to computer usable formats. Since 1976, SAZTEC has been converting data, text and graphic material to magnetic and optical media for customers primarily in the telephone, electronic publishing and health care markets. More recently, the dramatic growth in acceptance of image-based storage and retrieval systems is creating a growing demand for SAZTEC's conversion services across all industries. Scanning America was established in 1990 to provide a national, standardized drawing conversion service to the architectural, engineering, construction and mapping industries. Companies are continuing to depend more and more on Computer Assisted Design (CAD) systems,and their need to convert existing engineering drawings to CAD formats continues to grow. "This acquisition is an excellent fit," said Gary N. Abernathy, vice chairman and chief international officer of SAZTEC. "The experience and technologies of the two organizations are very complementary and in combination will allow us to offer a uniquely broad range of services to many diverse markets. "For example, SAZTEC has long provided data conversion services to the telephone industry. These companies are now moving to new areas of automation; including automated mapping, computer assisted design and geographic information systems. We were beginning to develop services to address these new areas but the resources of Scanning America will allow us to accelerate and broaden our effort," he added. "Correspondingly, Scanning America customers typically require the conversion of the text and attribute data associated with drawings, and that is our specialty." Abernathy also cited the timing of the deal as advantageous for SAZTEC. "Scanning America has invested heavily in 'putting itself on the map' by an aggressive promotional program and the development of a nationwide network of more than 70 licensed representatives. Revenue resulting from that effort is now developing nicely, and we are formulating plans to offer other SAZTEC services through this established marketing channel." Another positive aspect of the acquisition is the opportunity to develop the Scanning America concept in Europe, according to Scott W. Fancher, SAZTEC vice president of marketing. "They are just getting started with marketing efforts in Europe and we have already established a strong base there. We expect to be able to capitalize on this base to develop business more rapidly." Scanning America will continue to operate under its well- established name as a wholly owned subsidiary of SAZTEC. Headquarters will remain in Lawrence, and Robert J. Calhoun, vice president of finance for Scanning America, will assume the added responsibilities of general manager, reporting to Abernathy. Fancher acknowledged that the geographic proximity of the two companies was a factor in the combination. "It made it easier to complete the deal and will allow a very close management interaction going forward," he said. SAZTEC International Inc., a world leader in information management, provides services for information conversion and document processing utilizing electronic imaging, optical character recognition, computer processing, data entry and other technologies. SAZTEC International Inc. is traded in the over-the-counter market and is quoted on NASDAQ under the symbol SAZZ. For more information, contact Scott W. Fancher, vice president of marketing, SAZTEC International Inc., 6700 Corporate Dr., Kansas City, Mo. 64120; telephone: 816-483-6900 -0- 4/3/92 /CONTACT: Scott W. Fancher of SAZTEC International Inc., 816-483-6900/ (SAZZ) CO: SAZTEC International Inc.; Scanning America Inc. ST: Missouri, Kansas IN: CPR SU: TNM
MM -- DV003 -- 4826 04/03/92 12:28 EST
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|Date:||Apr 3, 1992|
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