CALGARY, May 2 /CNW/ - Sylogist Ltd. (TSX VENTURE:SYZ) ("Sylogist" or the
"Company") is pleased to announce it has entered into an agreement to acquire
the assets of Bellamy Software ("Bellamy"), a division of Nor-Dat Computer
Services Ltd of Edmonton, Alberta. In addition to retaining the services of
Bellamy's knowledgeable, experienced staff, the agreement provides for the
acquisition by Sylogist of all software assets, operating equipment, customers
and contracts.
Bellamy Software has provided systems and support services to the public
sector market for more than 25 years. Customers include over
60 municipalities, 16 school boards and 5 regional utilities, mostly located
in Alberta. Bellamy is the largest supplier of municipal systems software in
Alberta. The acquisition also provides exposure to customers in Saskatchewan,
Manitoba, Ontario and the Yukon. The combined annual operating budgets of the
public sector customers exceed $2 billion.
Bellamy has demonstrated profitable growth over the past 3 years,
generating revenue of $4 million in fiscal 2005. The majority of its revenue
is recurring. With an employee base of approximately 30, Bellamy adds a depth
of municipal skills in software development, deployment and customer support
to Sylogist's growing municipal business. The acquisition also adds the K-12
educational market and regional utility market to Sylogist's portfolio.
"We are very pleased to add Bellamy's strong public sector customer base
and experienced employee group to Sylogist's growth plans. With the addition
of Bellamy, Sylogist has become the dominant organization supporting municipal
and school board systems in Alberta. Bellamy's municipal customers complement
Sylogist's municipal shared services solution offered with our partner, the
Alberta Municipal Services Corporation. Our combined organizations enhance the
development and support resources available to local government clients."
stated Jim Wilson, President and CEO of Sylogist.
"Bellamy is very excited to become part of the Sylogist organization.
Sylogist provides Bellamy customers and employees with a strong base of
management, innovation and financial capacity to better serve our customers,
grow our employee skills, and capitalize on growth opportunities," noted Dan
Hinchey, President and CEO of Bellamy Software.
Sylogist is acquiring Bellamy Software for $3.5 Million, by way of cash,
assumed liabilities and $500,000 of Sylogist shares (based on a 5 day weighted
average trading price immediately before closing), which shares will be
escrowed for up to 1 year. Additionally, the vendors can earn further
consideration based on achieving certain performance goals in 2006 and 2007.
The transaction remains subject to normal conditions of asset sales, as
well as regulatory approval, and is expected to close in mid-May 2006.
- The TSX-Venture Exchange does not accept responsibility for the
adequacy or accuracy of this release -
About Bellamy Software
Established in Edmonton Alberta in 1979, Bellamy Software develops,
implements and supports a fully integrated line of software solutions for
public sector clients. Bellamy serves over 80 customers including cities,
towns, counties, school boards and regional utilities, primarily in Western
Canada.
About Sylogist Ltd.
Sylogist delivers information management and technology solutions to
government and industry clients. The Company's solutions are designed to
improve productivity for both conventional computer based workers and mobile
workers. Sylogist's software solutions, along with related services are
delivered to a global base through its own sales and delivery organization, as
well as through OEM channels.
The Company's stock is traded on the TSX Venture Exchange under the
symbol SYZ. Information about Sylogist can be found at
http://www.sylogist.com.
Forward-looking statements: This press release contains statements about
expected or anticipated future events and financial results that are
forward-looking in nature and, as a result, are subject to certain risks and
uncertainties, such as general economic, market and business conditions, the
regulatory process and actions, technical issues, new legislation, competitive
and general economic factors and conditions, the uncertainties resulting from
potential delays or changes in plans, the occurrence of unexpected events, and
Sylogist's capability to execute and implement its future plans. Actual
results may differ materially from those projected by management.
Although Sylogist believes that the expectations reflected in these
forward-looking statements are reasonable, undue reliance should not be placed
on them because Sylogist can give no assurance that they will prove to be
correct. Since forward-looking statements address future events and
conditions, by their very nature they involve inherent risks and
uncertainties. The acquisition described above could be delayed if Sylogist is
not able to obtain the necessary regulatory and stock exchange approvals on
the timelines it has planned. The acquisition will not be completed at all if
these approvals are not obtained or some other condition to the closing is not
satisfied. Accordingly, there is a risk that the acquisition will not be
completed within the anticipated time or at all. In addition, certain
information in this press release concerning Bellamy may change materially
from the time of this press release to the date of closing of the acquisition.
Accordingly, there is the risk that the assets acquired pursuant to the
acquisition may differ materially from that disclosed in this press release.
The forward-looking statements contained in this press release are made
as of the date hereof and Sylogist undertakes no obligation to update publicly
or revise any forward-looking statements or information, whether as a result
of new information, future events or otherwise, unless so required by
applicable securities laws.
