Eforce Completes Due Diligence for Acquisitions
Release Eforce Ltd.
Eforce Completes Due Diligence for Acquisitions of Product Sourcing International and Imagic
Eforce Ltd's transition to become a fully integrated end-to-end e-commerce company came one step closer today, as the company confirmed the successful completion of due diligence to acquire international supply chain management specialists Product Sourcing International Limited (PSI) and web development and hosting agency Imagic Graphics Limited (IGL). The acquisition will be made by issuing 39 million Eforce shares.
Shareholder approval will be sought for the confirmation of the acquisitions at a meeting of shareholders on 14 June 2000. Both acquisitions will be settled on 15 June 2000. The Directors of Eforce strongly recommend the approval of acquisition at the shareholders' meeting.
The acquisitions will shift Eforce's major emphasis to the business-to-business e-commerce sector while complementing Eforce's business to consumer portal, www.eforce.co.nz.
Eforce Chairman Richmond Paynter said the acquistions would give Eforce greater global potential and infinite scalability, and create the capacity for early business success.
"The contribution of significant existing revenue from both Product Sourcing International and Imagic will mean Eforce will have substantial cashflows and profits in its first year of business."
Financial projections to 28 February 2001 indicate that Eforce will have sales of $43.5m and a profit of $2.3m before tax amortisation and depreciation.
As Product Sourcing International and Imagic's business-to-business e-commerce opportunities expand internationally but particularly in Australia and Asia, Eforce directors expect that company revenue will grow significantly between February 2001 and February 2002.
Auckland-based Product Sourcing International is a supply chain management company that began operating in 1991. It manages the electronic procurement and fulfilment of products, servicing major New Zealand retail companies with a wide variety of merchandise. Product Sourcing International has offices in China and Hong Kong, affiliate offices in Malaysia, Indonesia and Vietnam, and recently opened a branch in Australia.
Imagic is a Christchurch-based web design development and hosting company. It has major national and international clients. They include Merino New Zealand, a company recognised as the supreme marketer of the year in 1999. In response to client demand, Imagic is currently establishing offices in Wellington and Auckland.