Apr 5, 2004 : Infocrossing Completes Buy of SMS

📅 April 5, 2004 - Infocrossing (infocrossing.com), a provider of IT and business process outsourcing services, has completed its acquisition of data center outsourcing provider Systems Management Specialists (SMS) (smsoutsourcing.com) agreed to in early March, the company announced on Monday. Infocrossing will pay $35 million in cash and 135,892 shares of Infocrossing stock for SMS.

Infocrossing financed the acquisition from part of the proceeds of its recent $30.6 million private placement of 2,917,000 shares of its common stock.
"The acquisition of SMS positions Infocrossing as a national provider in the strategic outsourcing market," says Zach Lonstein, chairman and chief executive officer of Infocrossing. "The deal moves Infocrossing from a strong regional service provider to a company with national scale and coast-to-coast operations. The greater capabilities and market presence will enable Infocrossing to offer greater value to our clients, target additional opportunities for growth, and continue toward our vision of becoming a recognized leader among providers of strategic outsourcing services in the United States."
Infocrossing said that in the first year, it expects the acquisition to bring the company $33 million in additional gross revenue.