RELM Holdings Inc. Executes a Letter of Intent for the Acquisition of a Full Spectrum Information Technology Services and Suppor
November 30 2009 - 10:14AM
Marketwired
RELM Holdings Inc. (PINKSHEETS: RELM) announced today that it
executed a Letter of Intent (LOI) to acquire 100% of the membership
interests in a well established Delaware-based Information
Technology Service and Support company. Management noted that the
target company will remain undisclosed pending the execution of
definitive agreements per customary non-disclosure terms agreed on
by the parties. The Company, founded in the mid 1990s, provides
high-quality computer related support and integration services to
its clients in the legal, financial, educational, governmental and
commercial markets in and around Delaware. Revenues for 2009 are
expected to reach $4,000,000.00. With this transaction and the
previously announced planned acquisitions, Relm Technology Group's
(RTG) annual technology revenues will exceed $10,000,000.00.
Management will provide consolidated pro-forma statements once due
diligence has been completed.
Management plans to operate the Company within the newly formed
Relm Technology Group (RTG) and the Company's key executive will
become a member of the RTG Executive Management Team with a
leadership role in managing the IT Services business. This
transaction takes advantage of significant short-term "owner
financing" and is expected to close on or before December 31, 2009
pending execution of a Definitive Purchase Agreement. To minimize
dilution and maximize shareholder value, Management is currently
seeking permanent debt financing to fund the announced acquisitions
while continuing to pursue three additional targets in the near
term.
According to Marc Greenberg, EVP, "This acquisition is very
strategic for us as it helps to further cement our position in the
Delaware market. This company was one of the first groups that we
targeted when we launched our local roll-up strategy. The award
winning Company has a stellar reputation and is posting impressive
results for 2009. Since the Company and Access Versalign share a
common business direction, we look forward to significant
opportunities to consolidate both the administrative and technical
operations. At our peak, Versalign reached $90 Million in revenue.
Through strategic acquisitions, we plan to eclipse this number in
the coming years."
Randall Burton, Chairman, added, "This acquisition is another
multi-dimensional addition for us. There are significant
operational and technical synergies with Access Versalign, a
meaningful presence in the Delaware legal community that closely
aligns with our Document Management acquisitions, and an
experienced leadership team to help manage the day to day IT
Service business. This is a perfect fit that should bring us
immediate and long term benefits."
About RELM
RELM was incorporated to acquire operating businesses and is now
a holding company with a primary focus on financial and information
technology services along with real estate. The Company bases its
business model on the acquisition of synergistic businesses with
the capability to support and compliment its financial and
technology products. RELM intends to lead a vertically integrated
family of companies that will provide full solutions for its
affiliates and clients, such as underwriting, servicing, raising
capital, and commercialization, while securitizing and guaranteeing
its products in the marketplace. Since 1994 the Company has
conceived, designed, and developed innovative, new products that
"absorb asset risk." For more information about RELM, please visit
www.relmholdingsinc.com.
About AVI
AVI was organized in 2008 and in 2009 acquired Versalign Inc.,
which was founded in 1985 and currently provides targeted
Information Technology solutions for corporate, professional and
governmental clients in the Mid-Atlantic region. AVI provides RELM
with new top management plus it increases the employee base to over
25 employees. This acquisition gives RELM access to cash flows and
expanded business opportunities in the information technology
industry. For more information about Versalign, please visit
www.versalign.com.
SAFE HARBOR
The Private Securities Litigation Reform Act of 1995 provides a
safe harbor for forward-looking information made on the company's
behalf. All statements, other than statements of historical facts
which address the company's expectations of sources of capital or
which express the company's expectation for the future with respect
to financial performance or operating strategies, can be identified
as forward-looking statements. Such statements made by the company
are based on knowledge of the environment in which it operates, but
because of the factors previously listed, as well as other factors
beyond the control of the company, which include the ability of the
company to implement its newly expanded business model or acquire
businesses and real estate, actual results may differ materially
from the expectations expressed in the forward-looking
statements.
Contact: RELM Holdings Inc. manager@relmholdingsinc.com
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