Enterprise hardware customers gain access to Softchoice's full range of
TORONTO, Oct. 5 /CNW/ - Softchoice Corporation (TSX:SO), a leading North
American provider of technology products and services, today announced that it
has entered into a Purchase and Sale Agreement to acquire the technology
solutions division of Toronto-based NexInnovations Inc. This transaction is
subject to court approval and normal regulatory approval.
Under the terms of the Agreement, Softchoice is paying $10 million to
acquire the assets associated with the NexInnovations technology solutions
business. This includes customer relationships and records along with certain
assets. Softchoice will be hiring key employees associated with supporting
these customer relationships.
"This acquisition provides Softchoice with an exceptional opportunity to
add to our enterprise customer base here in Canada," noted David MacDonald,
President and CEO of Softchoice. "I am looking forward to forging stronger and
deeper relationships with each of these customers as we demonstrate the
immediate value that Softchoice can bring to bear in helping them to select,
acquire and manage their information technology resources."
On a trailing 12-month basis, the gross revenue of NexInnovation's
technology solutions division is estimated at approximately $200 million.
Softchoice estimates that this transaction will be accretive to its
shareholder value in 2008. Funding for the transaction will be provided from
Softchoice's current credit facility.
Established in 1978, NexInnovations has grown to become a foremost
provider of information technology infrastructure and consulting services to
leading Canadian enterprise customers.
About Softchoice Corporation
As one of North America's leading providers of technology products and
services, Softchoice helps businesses and organizations of all sizes to
select, acquire and manage their software and hardware technology resources.
Softchoice offers a full range of capabilities, including face-to-face
consultations and IT asset management services designed to help customers save
time, money and risk in IT procurement. In 2006, Softchoice was named Software
Value Added Reseller (VAR) of the Year by VAR Business magazine. Softchoice
currently has 658 employees operating from more than 30 branch offices located
in major cities across the U.S. and Canada. Softchoice stock is listed on the
Toronto Stock Exchange (TSX) under the trading symbol "SO." The common shares
of Softchoice are not registered under the U.S. Securities Act of 1933 and are
not publicly traded in the United States.
This press release contains forward-looking statements that involve risks
and uncertainties. These forward-looking statements relate to, among other
things, plans and timing for the introduction and enhancement of our services,
and other expectations, intentions and plans contained in this press release
that are not historical fact. When used in this press release, the words
"anticipate," "expect" and similar expressions generally identify
forward-looking statements. These statements reflect our current expectations
and are subject to a number of risks and uncertainties including, but not
limited to, change in technology and general market conditions, many of which
are set out or incorporated by reference in the Company's latest Annual
Information Form. Due to the many risks and uncertainties, Softchoice cannot
assure that the forward-looking statements contained in this press release
will be realized.
For further information:
For further information: Anne Brace, Chief Financial Officer, Softchoice
Corporation, (416) 588-9986, email@example.com; David Chin,
Vice President, Hill & Knowlton Canada, (416) 413-4633,