Combination Extends Advant-e Solution Portfolio and Provides Opportunities to Target New Vertical Industries
DAYTON,
Ohio, June 15 /PRNewswire-FirstCall/ -- Advant-e Corporation (BULLETIN
BOARD: AVEE) , a provider of Internet-based business-to-business
electronic commerce services via its sole operating subsidiary, Edict
Systems, Inc., today announced that it has entered into a nonbinding
Letter of Intent to purchase a privately owned Delaware corporation,
Merkur Group, Inc., based in West Chester, Ohio. The principal
shareholder of Merkur Group, Inc. is Rob D. Wadzinski, the brother of
Advant-e CEO Jason K. Wadzinski. The proposed acquisition is subject
to completion of due diligence and execution of a definitive purchase
agreement by the parties. There can be no assurances that a closing
will occur.
For over ten years, Merkur Group has helped organizations streamline
the document-intensive aspects of procure-to-pay and order-to-cash
business processes. Merkur Group solutions provide multi-channel
document delivery, receipt, capture, archive, and workflow capabilities
that are tightly integrated with CRM, SCM, financial, and ERP systems
such as Oracle, PeopleSoft, SAP, Baan, legacy, and many other business
applications.
For the past several years, Merkur Group has
generated revenue of approximately $2 million on a non-GAAP reporting
basis. Advant-e expects the acquisition of Merkur to contribute to the
Company's profitability during the second half of 2007.
Under
the terms of the LOI, Advant-e Corporation will acquire on or about
July 2, 2007 all issued and outstanding shares of stock of Merkur Group
for a total purchase price not to exceed $1.6 million. The purchase
will be comprised of cash not to exceed $950,000 and unregistered
Advant-e common stock not to exceed 396,300 shares. Advant-e has
secured an independent valuation for Merkur from Mills &
Associates, a Dayton, Ohio based mergers and acquisitions firm.
Commenting
on the business combination, Mr. Jason K. Wadzinski, CEO of Advant-e
stated, "This proposed acquisition provides Advant-e with the
opportunity to grow top-line revenue with document processing products
that
are compatible with our existing e-commerce solutions. In addition, the
acquisition
offers opportunities for combined Edict Systems-Merkur Group solutions
targeted to new customers as well as extend the value both companies
offer to existing customers."
About Advant-e Corporation
Advant-e,
via its wholly owned and sole operating subsidiary Edict Systems, Inc.,
is a provider of Business-to-Business electronic commerce software and
Internet-based applications specializing in Electronic Data Interchange
(EDI)
and XML-based solutions for recurring transactions. Advant-e
specializes in horizontal transaction services via EnterpriseEC(R), an
Internet-based Trading Community Connectivity, Management, and
Integration solution, and within specific industries via web-based EDI
services including www.GroceryEC.com, www.RetailEC.com,
www.AutomotiveEC.com, www.CPGSupplier.com, and www.WebEDI.com.
Additional
information about Advant-e Corporation can be found at www.Advant-e.com
and www.edictsystems.com or by contacting investor relations at (937)
429-4288. The company's email is info@edictsystems.com.
The
information in this news release includes certain forward looking
statements that are based upon assumptions that in the future may prove
not to have been accurate and are subject to significant risks and
uncertainties, including statements to the future financial performance
of the company. Although the company believes that the expectations
reflected on its forward looking statements are reasonable, it can give
no assurance that such expectations or any or its forward-looking
statements will prove to be correct. Factors that could cause results
to differ include, but are not limited to, successful performance of
internal plans, product development and acceptance, the impact of
competitive services and pricing, or general economic risks and
uncertainties.
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