May, 2001 : E-Sync Networks to Sell Professional Services Division
📅 - E-Sync Networks Inc. (esyncnetworks.com), a leading provider of e-business infrastructure products and services, signed a non-binding letter of intent with Howard Systems International, a privately-held company providing information technology and business staffing solutions to Fortune 1000 companies, for HSI to acquire E-Sync's Professional Services division. The contemplated transaction would be in addition to E-Sync's recently announced contemplated merger with SpaceLogix, Inc., and would not interfere with the earlier announced transaction.
According to the terms of the deal, HSI will acquire the Professional Services division of E-Sync Networks for $300,000 in cash at the closing; a $50,000 promissory note payable in two equal installments following the Closing, subject to certain contingencies; and a profit sharing arrangement from which E-Sync will receive twenty percent of HIS's earnings before interest and taxes of the acquired business in 2002, fifteen percent of the business? EBIT in 2003, ten percent in 2004 and five percent in 2005. The new group will continue operating under the name E-Sync Professional Services.
Additionally, the two companies agreed to negotiate a strategic partnering relationship through which they will jointly market enterprise messaging consulting and hosting services, exchange sales leads and implement a matrix for cross-selling.
?We have been in explorations with Howard Systems over the past several months in an attempt to find the right formula for our business relationship,? said Michael A. Clark, President and COO of E-Sync Networks. ?HIS's vision is a good fit with E-Sync's business objectives and strategy of building the business around our expertise in delivering messaging services.?
Howard Persky, President of HIS says ?We are very excited about the opportunities represented by this agreement. HSI is eager to expand our existing Microsoft Solutions relationship into a national practice. The acquisition of E-Sync Professional Services alongside the strategic alliance formed with E-Sync Networks, affords a competitive advantage in achieving that goal, as well as enhancing the portfolio of services we can offer our clients.?
According to the terms of the deal, HSI will acquire the Professional Services division of E-Sync Networks for $300,000 in cash at the closing; a $50,000 promissory note payable in two equal installments following the Closing, subject to certain contingencies; and a profit sharing arrangement from which E-Sync will receive twenty percent of HIS's earnings before interest and taxes of the acquired business in 2002, fifteen percent of the business? EBIT in 2003, ten percent in 2004 and five percent in 2005. The new group will continue operating under the name E-Sync Professional Services.
Additionally, the two companies agreed to negotiate a strategic partnering relationship through which they will jointly market enterprise messaging consulting and hosting services, exchange sales leads and implement a matrix for cross-selling.
?We have been in explorations with Howard Systems over the past several months in an attempt to find the right formula for our business relationship,? said Michael A. Clark, President and COO of E-Sync Networks. ?HIS's vision is a good fit with E-Sync's business objectives and strategy of building the business around our expertise in delivering messaging services.?
Howard Persky, President of HIS says ?We are very excited about the opportunities represented by this agreement. HSI is eager to expand our existing Microsoft Solutions relationship into a national practice. The acquisition of E-Sync Professional Services alongside the strategic alliance formed with E-Sync Networks, affords a competitive advantage in achieving that goal, as well as enhancing the portfolio of services we can offer our clients.?
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