Science & Technology
Science and Technology
Science and Technology
Tue, December 30, 2008
Mon, December 29, 2008
Park City Group to Close Acquisition of Prescient Applied Intelligence by January 16th
PARK CITY, Utah--([ BUSINESS WIRE ])--[ Park City Group, Inc. ] (OTCBB: [ PCYG ]), a developer of patented retail supply chain solutions and services, today announced that the shareholders of Prescient Applied Intelligence ([ OTCBB: PPID ]) will vote on the pending acquisition by Park City Group at a special meeting of shareholders on January 13, 2009. Park City Group expects to consummate the acquisition within three days following the meeting, and will operate Prescient as a wholly owned subsidiary.
This accretive acquisition is projected to provide:
- Significant increase in recurring subscription based revenues
- Increase in Park City Group total revenues from $3.3 million to $12 million
- Substantially increased EBITDA to approx. 15% of revenue
- Synergies of product and service offerings
- Strong future revenue growth opportunities within the combined customer base, and
- Economies of scale in business operations and development costs
- Identified $4 million in annualized cost reduction measures
- Of which $3+ million have already been taken and will be reflected over the next several quarters
- Identified $4 million in annualized cost reduction measures
Commenting on the combined companies, Randall K. Fields, Chairman and CEO, said that, "We are very satisfied with the continued and increasing positive results of our cross selling efforts. The integration of the two businesses is in its final stages and will be completed by the time we close the acquisition. Park City Group has successfully transitioned its business model from one that historically generated approximately 70% of its revenues from license-related business to one that now generates approximately 70% of revenues from recurring subscription-based customers."
About Park City Group
Park City Group, Inc. develops and markets patented computer software and consulting services that help retailers and their suppliers to increase sales while reducing inventory and labor costs -- the two largest, controllable expenses. The technology has its genesis in the operations of Mrs. Fields Cookies, co-founded by Randy Fields, chief executive officer of Park City Group. Industry-leading customers such as The Home Depot, Victoria's Secret, The Limited, Anheuser Busch Entertainment and Tesco Lotus benefit from Park City Group software. To find out more about Park City Group, please visit [ www.parkcitygroup.com ].
Statements in this news release that relate to Park City Group's future plans, objectives, expectations, performance, events and the like are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934. Future events, risks and uncertainties, individually or in the aggregate, could cause actual results to differ materially from those expressed or implied in these statements. Those factors could include changes in economic conditions that may change demand for the Company's products and services and other factors discussed in the "forward-looking information" section and the "risk factor" section of the management's discussion and analysis included in the Company's report on Form 10-K for the year ended June 30, 2008 and in any risk factors or cautionary statements contained in the Company's periodic reports on Form 10-Q or current reports on Form 8-K filed with the Securities and Exchange Commission. This presentation is comprised of interrelated information that must be interpreted in the context of all of the information provided and care should be exercised not to consider portions of this release out of context. Park City Group uses paid services of investor relations organizations to promote the Company to the investment community. Investments in any company should be considered speculative and prior to acquisition, should be thoroughly researched. Park City Group does not intend to update these forward-looking statements prior to announcement of quarterly or annual results.
