NEW YORK, Jun 08, 2004 (PRIMEZONE via COMTEX) -- Advanced Communications
Technologies Inc. (OTCBB: ADVC) (the "company") today announced that it has
closed the acquisition of Cyber-Test Inc. ("Cyber-Test"), purchasing all of the
operating assets and core business of Cyber-Test, an established electronic
equipment repair company with annual revenues of approximately $6 million. The
company has formed Encompass Group Affiliates Inc. ("Encompass Group"), a new
wholly owned subsidiary to be the direct parent of Cyber-Test.
Wayne Danson, the company's President and Chief Financial Officer, said, "We
have made a strategic decision to diversify our business operations by expanding
into multiple markets and industries, and this acquisition is the first step in
achieving that vision."
Based on trailing 12-month historical results, the company forecasts
consolidated revenue from operations and investments in the amount of $7.4
million for fiscal 2005, and EBIDTA of $600,000. Cyber-Test's contribution to
consolidated EBIDTA is forecasted to be $500,000. When asked to comment on the
company's new financial position, Danson said, "We are now a solid,
revenue-generating company moving towards becoming a vertically integrated
service and technology business with strategic minority investments in other
diverse industries. This acquisition improves our financial stability." Danson
concluded with, "We are delighted to be able to demonstrate so quickly to
shareholders how we can use our management expertise to add value to the
company. With the Cyber-Test acquisition, the company now has approximately $7
million in assets."
In accordance with the Cyber-Test closing, Encompass Group acquired all of the
operating assets, tangible and intangible property, rights and licenses,
goodwill, trade name and business of Cyber-Test, for a total purchase price
consisting of $3,000,000 in cash, $500,000 in a three-year unsecured installment
note and 50,000,000 shares of restricted company common stock to be earned
prorata over a three-year period based on Cyber-Test meeting certain revenue and
earning milestones.
The company is in the process of establishing a new website that describes the
company's, Encompass' and Cyber-Test's business and investment activities. The
newly designed website will be launched over the next sixty days.
More information on the company's new management team structure is available in
the press release dated June 2, 2004, accessable through the company's Online
Newsroom link below.
About Cyber-Test, Inc.
Cyber-Test Inc. ("Cyber-Test"), a Florida-based corporation owned by Encompass
Group Affiliates Inc., with 85 employees, is an established electronic equipment
repair company. Specializing in the repair of computer peripheral products,
Cyber-Test is uniquely positioned as a strategic partner for OEMs (Original
Equipment Manufacturers), warranty companies, dealers and end-users. The
versatile Cyber-Test service model enables its customers to support virtually
any electronic product. Cyber-Test provides a multitude of services that offer
service support at any level from repair, warranty exchange, to end-of-life
product support.
Cyber-Test offers the flexibility to deliver exactly what its customers need.
Whether it is to outsource entire service departments, or just choose one of the
many services offered, Cyber-Test can provide a multitude of service
infrastructures to fit the needs of its clients. Cyber-Test's menu of services
includes: i) Call Center/Help Desk; ii) Depot Repair; iii) New Product Sales;
iv) Parts Sales; v) Spare Parts Sales; vi) Advance Exchange; vii) Product Return
and Warranty Support; viii) Service Contract Billing and Administration; ix)
Logistics; x) Detailed Tracking Analysis and Service Data Analysis; and xi) Exit
Strategy and End-of-Life Product Support.
Current customers of Cyber-Test include national and regional reinsurance
companies and major office and electronic retail super stores. For more
information on Cyber-Test, visit www.equipfix.com.
About Advanced Communications Technologies Inc.
Advanced Communications Technologies Inc. (the "company") is a holding company
that, through its wholly owned subsidiary Encompass Group Affiliates Inc., owns
Cyber-Test Inc., an established electronic equipment repair company based in
Orlando, Fla. The company also owns a minority interest in Yorkville Advisors
Management, LLC, an investment management partnership, through its wholly owned
subsidiary Hudson Street Investments Inc.
This release contains 'forward-looking statements' within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of the Securities
Act of 1934. Although the Company believes that the expectations reflected in
such statements are reasonable, no assurances can be given that they will prove
correct. The Company remains exposed to risk factors outlined in the Company's
Registration Statement as filed with the Securities and Exchange Commission on
July 16, 2003. Statements made herein are not a guarantee of future corporate or
stock performance.
Further information may be found by contacting Wayne I. Danson, President and
Chief Financial Officer at 646-227-1600.
HTML: newsroom.eworldwire.com/wr/060804/10357.htm
PDF: newsroom.eworldwire.com/pdf/060804/10357.pdf
ONLINE NEWSROOM: newsroom.eworldwire.com/1376.htm
LOGO: newsroom.eworldwire.com/1376.htm
SOURCE: Advanced Communications Technologies, Inc.
By Staff
CONTACT: Advanced Communications Technologies, Inc., New York
Wayne Danson
646-227-1600
(C) 2004 PRIMEZONE, All rights reserved.
INDUSTRY KEYWORD: Biotechnology
SUBJECT CODE: ACQUISITION
ELECTRONICS
Company Announcement
Mergers and Acquisitions
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