Paladyne will be paying E-Commerce's eight owners a total $5 million in several annual cash instalments and transferring 4.1 million shares of preferred stock that will be convertible later into 8.2 million shares of common. E-Commerce shareholders are also receiving warrants allowing them to buy 4.5 million shares of Paladyne.
Paladyne lost $28,151 on revenue of $5.5 million in fiscal 2000, an improvement over a loss of $1.4 million on sales of $4.4 million in fiscal 1999. The company's common shares are trading at 94 cents on the Over the Counter Bulletin Board.
Paladyne president Ronald Weindruch will be the new group's executive vice president of business development. Terrence Leifheit, CEO of E-Commerce, becomes president. The titles of John Foster, chairman and CEO of Paladyne, will remain unchanged.
The acquisition is expected to strengthen the revenue base of both firms and launch them into the customer-relationship management business. The merger is expected to generate annual sales of $25 million with a work force of 800.
Using their individual core strengths, the firms plan to provide software and support for electronic retailers and other disciplines.Paladyne designs software that cleans data bases. E-Commerce opeates toll-free call centers and provides electronic assistance for national retailers, including Lowe's home-improvement chain of Wilkesboro, NC and Friedman's Jewelers' outlets.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
