THE FUTURE NOW, INC. ANNOUNCES PROPOSED ACQUISITIONS
THE FUTURE NOW, INC. ANNOUNCES PROPOSED ACQUISITIONS CINCINNATI, Feb. 18 /PRNewswire/ -- The Future Now, Inc.
(NASDAQ: FNOW), the Cincinnati-based computer reseller, today announc- ed it had reached an agreement in principle for the acquisition of nine computer reselling operations currently owned by Intelligent Electronics, Inc. (NASDAQ/NMS: INEL). Completion of the transaction is subject to regulatory approval and approval of the Boards of Directors of both parties and the shareholders of The Future Now. The acquisition is expected to be completed in May.
The operations expected to be acquired are located in or near Boston, Dallas, Los Angeles, Nashville, New York, Pittsburgh, San Francisco, St. Louis and the District of Columbia. Following the acquisition, The Future Now would be one of the ten largest computer resellers in the United States, based on sales volume, with pro forma 1991 revenue of approximately $350 million. The agreement calls for The Future Now to issue approximately 1.7 million shares of its common stock to Intelligent in exchange for the operations acquired. Intelligent would own approximately 32 percent of The Future Now and would hold a seat on its board of directors. The acquisition would be accounted for as a purchase. In a separate transaction, Intelligent is currently negotiating to acquire substantially all of the assets of two other computer resel- lers. If the negotiations are successful, it is expected that The Fu- ture Now would also acquire substantially all of the assets of these resellers from Intelligent. This purchase also would be accounted for as a purchase. Inclusion of this acquisition would bring the company's estimated 1991 pro forma revenue to approximately $450 million. Future Now President and Chief Executive Officer Terry L. Theye commented: "These acquisitions give The Future Now a 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." Upon completion of the transaction, The Future Now executive staff is expected to remain in place with the substantial majority of Intelligent's Company Center Division staff becoming employees of The Future Now. The acquisitions are expected to require the addition of 25-30 employees to The Future Now's corporate headquarters inCincinnati. Sai d 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 Future Now sells, installs and services microcomputers, microcomputer software products and turn-key microcomputer systems for business, professional, educational and governmental customers. With more than 550 employees, the company currently has 15 sales offices in eight states. -0- 2/18/92 /CONTACT: David L. Durham, vice president of finance, treasurer and secretary of The Future Now, 513-771-7110/ (FNOW INEL) CO: The Future Now, Inc. ST: Ohio IN: CPR SU: TNM DA -- CL006 -- 9775 02/18/92 09:19 EST
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|Date:||Feb 18, 1992|
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