TORONTO, June 19 /CNW-PRN/ -
Microforum Inc. (TSE:MCF) is pleased to announce that it has entered into a preliminary non-binding Letter of Intent to acquire Blue Hypermedia, Inc. (Blue.com), a premier New York-based web development firm and new media production company. The purchase price is expected to be US$14 million, payable as to US$4.9 million cash and the balance in common shares based on a 15 day weighted average share price preceding the closing date. The common shares may not be resold in the marketplace for a period of one year from the closing date. The Letter of Intent is subject to a number of conditions including completion of due diligence, receipt of audited financial statements, entering into definitive documentation, and receipt of regulatory and director approval. The transaction is expected to close towards the end of July, 2000.
Founded in 1996 and based in the Soho district of New York City, Blue.com is a full-service e-business and creative web solutions company providing award-winning creative services, consulting and technical development to a broad range of high profile clients. Key clients include: The New York Times, Anheuser Busch, iMotors.com, Cigna, and The MTVI Group. Long time Silicon Alley favorites, Blue.com and its three founders have been featured in various print, television and online productions in recognition of their ``next- generation'' web development capabilities. Blue.com has been profitable since its inception.
Blue.com provides a full range of e-business solutions and services including: e-business consulting and online brand strategy, high-end creative content, animation and streaming media production, online advertising campaigns, web marketing, intranet and internal and technical development of sophisticated online applications and internet enabled solutions.
``The acquisition of Blue represents an integral component of Microforum's expansion into key markets in the United States'', stated Howard A. Pearl, President and CEO of Microforum. ``The quality of Blue's e-business solutions, particularly its award-winning creative design, combined with strong client relationships and an excellent brand in the `Blue' name, are key ingredients in this acquisition. We believe we can strengthen Blue's existing and future client relationships with Microforum's breadth of service offerings as well as additional technical depth from our resource base in Toronto and Halifax.''
``We are enthusiastic about Blue.com joining one of North America's leaders in e-business,'' stated Will Snyder, James Roven and Timothy Roven, the principals of Blue. ``As part of a larger organization, Blue.com will be able to undertake larger and increasingly more sophisticated e-business engagements and provide a greater range of services to an increasing number of national and international clients.''
About Microforum
Microforum Inc. (www.microforum.com) is a leading North American digital business transformation company providing a broad range of electronic commerce, Internet strategy and database services. Microforum is publicly traded on The Toronto Stock Exchange under the symbol ``MCF'' and is headquartered in Toronto, with offices in Halifax, Nova Scotia, Chicago, IL, San Francisco, CA and Seattle, WA.
Forward-Looking Statements
Investors should take note that certain statements in this press release are forward-looking and may not give full weight to all of the potential risks and uncertainties. These forward-looking statements include statements that are subject to risks and uncertainties (e.g., the risk that the transaction may not close). Forward-looking statements are subject by their nature to risks and uncertainties, and actual results, actions or events could differ materially from those set forth in the forward-looking statements. Any forward- looking statements speak only as of the date made. The Company is not undertaking to update any information in the foregoing reports until the effective date of its future reports required by the securities laws.
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