Chell Group signs Letter of Intent to acquire EMTEC Inc. / New Jersey-based solutions integrator anticipated to add $75 Million in revenues to Chell
4.04.2002, 10:11
NEW YORK 4. 4. 2002, NY (ots/PROTEXT) - CHELL GROUPCORPORATION (NASDAQ:CHEL Frankfurt WKN: 918068), a technologyholding company today announced the signing of a Letter of Intentwith EMTEC Inc., (NASD OTC: ETEC.OB), to acquire 100% of itsoutstanding shares in a proposed cash/stock transaction. Foundedin 1981, EMTEC is a profitable solutions integration firm thathas been providing information technology solutions to thecorporate and educational sectors for over 20 years.
Cameron Chell, Chell Group Chairman and CEO noted, 3This is asignificant step in our growth strategy to build a pre-eminentportfolio of operating IT Services companies. EMTEC, with itswell-run, profitable operations and high-end solutions, whichinclude products from SUN Microsystems, diversifies Chell Groupin terms of geography, products and service offerings. The EMTECteam has delivered strong operating results and we are veryexcited about this transaction.
John Howlett, EMTEC CEO said, "We are pleased to be part ofthe Chell Group, and look forward to continue to grow ourbusiness and to deliver increased value for both our shareholdergroups."
Don Pagnutti, Chell Group CFO said, "Upon closing, we wouldlook for this acquisition to be immediately accretive to ourearnings per share and to continue to generate solid, positiveoperating cash flows. EMTEC, a leader in its markets, will addsignificant recurring revenues to Chell Group. We anticipate adue diligence phase of 60 days."
After completion of due diligence, joint Board approval andthe signing of a Definitive Merger Agreement, it is anticipatedthat a proxy statement will be sent to all EMTEC Shareholders fortheir approval, with the positive recommendation of the EMTECBoard.
About Chell Group Corporation:
Chell Group Corporation (NASDAQ Small Cap: CHEL) is atechnology holding company in business to acquire and growundervalued technology companies. Chell Group's portfolioincludes wholly-owned Logicorp Ltd., www.logicorp.ca, NTNInteractive Network Inc. www.ntnc.com, GalaVu EntertainmentNetwork Inc. www.galavu.com, and Engyro Inc. (investmentsubsidiary) www.engyro.com and cDemo Inc. (investment subsidiary)www.cdemo.com. For more information on the Chell Group, pleasevisit www.chell.com or www.chell.de . About EMTEC Inc:
Since 1981, EMTEC has provided IT solutions and services forleading companies throughout New York, New Jersey, Connecticut,Pennsylvania, Delaware and Georgia. A leading organization ininformation technology, Emtec provides services including NetworkMonitoring, Help Desk, and IT Consulting integrated withsolutions in Information Security, Data Storage, Data Protectionand Enterprise Infrastructure. EMTEC has been listed on the VARBusiness 500 continuously since 1995. For more information,please visit www.emtecinc.com. For additional information please contact: Ron Matthews Director, Investor Relations Chell Group Corporation
+1.403.303.2358 rmatthews@chell.com Arian L. Hopkins Manager, Corporate Communications Chell Group Corporation +1.403.303.2347 arian@chell.com
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