Charlotte, NC; August 8, 2005 - DecisionPoint International (“DecisionPoint”), a boutique investment bank providing merger and acquisition services to middle-market services and technology clients, announced today that its client, Emtec, Inc. (OTC BB: ETEC.OB) (“Emtec”), a publicly traded systems integrator, has merged with DARR Westwood Technology Corporation, the parent company of Westwood Computer Corporation (“Westwood”).
Emtec, headquartered in Trenton, NJ, is a systems integrator providing technology solutions to enable customers to effectively use and manage data to grow their businesses. Westwood, headquartered in Springfield, NJ and established in 1964, is a privately held information technology company and a leading supplier of IT products and services to the Federal Government. Westwood has been recognized as one of the top 20 General Service Administration vendors in the IT industry during each of the past eight years. The company has additional locations in Virginia and New York, as well as five regional offices in the South and Western US.
The combined company will continue to operate as Emtec under the ticker symbol ETEC. Westwood’s revenues for the twelve months ended August 31, 2004 were $129.9 million. Emtec’s revenues for its fiscal year ended March 31, 2005, were $112.7 million.
As a result of this merger, DARR Westwood’s shareholders acquired 55.7 percent of Emtec’s then issued and outstanding shares of common stock and Emtec’s board of directors will be comprised solely of DARR Westwood’s designees, thereby resulting in a change of control of Emtec. Dinesh Desai, Chairman of Westwood, will become the Chairman and CEO of Emtec. John Howlett and Ron Seitz, currently Emtec’s CEO and COO, respectively, will remain with the combined company in the respective roles of President, Emtec Northeast, and President, Emtec Southeast. Keith Grabel, president of Westwood, will continue in his current position.
In accordance with the terms of the merger, Emtec will initiate a self tender offer sometime within the next 30 days to repurchase up to 2,864,584 shares of its then issued and outstanding common stock having an aggregate purchase price of up to $5.50 million at a price of $1.92 per share.
“We are optimistic about the prospects for Emtec as a result of this merger,” said John Howlett, CEO of Emtec. “Emtec already has market diversification in commercial, education, and state and local government accounts. With the Westwood merger, Emtec adds a significant diversification into the Federal market space. Additionally, we expect to use Emtec’s services expertise to ramp up services across Westwood’s Federal Government accounts.”
Emtec, Inc. established in 1981, is a systems integrator focused on providing technology solutions that enable its customers to effectively use and manage their data to grow their businesses. Our areas of specialization in information technology (“IT”) include communications (IP telephony, wireless connectivity, cabling, network infrastructure), data availability (remote access, messaging, management), enterprise computing (enterprise architecture, high availability, server consolidation, data management), and managed services (network monitoring, help desk). Emtec’s solutions are crafted to enable customers to become more efficient and effective, thereby giving them a competitive advantage. For more information, visit www.emtecinc.com.
Westwood, headquartered in Springfield, New Jersey and established in 1964, is a privately held information technology company and a leading supplier of IT products and services to the Federal Government. It has been recognized as one of the top 20 General Service Administration vendors in the IT industry during each of the past eight years and was named in data compiled by the GSA as the ninth largest such vendor for the Federal Government’s 2004 fiscal year. The company has additional locations in Virginia and New York, as well as five regional offices in the South and Western United States. For more information, visit www.westcomp.com.
DecisionPoint is a global leader in M&A advisory services for middle-market technology companies in the services, software, and communication sectors. For additional information on DecisionPoint, visit www.DecisionPointINT.com.
For further information, contact: Doug Ellis, Managing Partner; (704) 916-9070; DEllis@DecisionPointINT.com.