IGII IBSG International Executes a Letter of Intent to Buy A-Division IT Systems Limited; A-Division IT Systems Limited Has Projected Additional Revenues Of US$75 Million over Next 12-18 Months
Business Wire - March 6, 2006 8:30 AM (EDT)
CELEBRATION, Fla., Mar 06, 2006 (BUSINESS WIRE) -- IBSG International, Inc. (OTCBB:IGII), a holding company for three software subsidiaries involved in turn-key digital service center software, Sarbanes-Oxley and security solutions, and software development, maintenance and data storage, announced today that it has signed a Letter of Intent to buy A-Division IT Systems Ltd. (A-Division), a United Kingdom based company and partner in IBSG International's (IBSGI) South African project. A-Division is a subcontractor to BAE Systems and provides IT projects for BAE's offset programs by establishing IT Hubs. The acquisition is a performance based transaction combining cash and stock that management has been informed is valued at approximately $4 million. It is projected that over the next 12-18 months this transaction will generate US$75 million. No assurances can be given that such revenues will be achieved and although a final acquisition agreement is expected to be executed, there is no guarantee.
A-Division is engaged in international business development and consultancy in the Technology sector and is a subcontractor for BAE System's offset credit projects around the world. The purchase gives IBSG participation in e-commerce platform projects for Small-Midsize Enterprises (SMEs) in countries beyond South Africa. IBSGI's relationship with A-Division and BAE has already brought the South African project and opportunities with similar projects in Saudi Arabia, Malaysia and India.
Dr. Michael Rivers, CEO of IBSG International, said, "This acquisition increases the market presence of both companies. As a unified entity, ownership of A-Division will effectively make IBSGi a subcontractor on BAE's numerous offset credit projects throughout the developing world and provide a broad network of contracts in South East Asia, China and Europe. BizWorldPro(TM) will be A-Division's e-commerce platform for all its future projects. This is right in-line with our strategy to focus this year on providing an international commerce trading platform and bridge international commerce between the SME markets both here and abroad."
Professor Steven Grigg, Executive Vice President of BAE Systems, commented that the e-commerce projects, "have been well received in South Africa." He added, "The South African government is keen to see these projects implemented as it is well understood that they will support the development of the local SME market, which is a key focus for the government. Because of the benefits BizWorld Pro brings to the SME developing markets, we are now in discussions with our teams in Malaysia, Saudi Arabia and India as well."
Thomas Lord Taylor of Blackburn, a director of A-Division IT Systems and member of the house of Lords in the UK, said, "We believe that these offset projects collectively offer significant benefits to governments around the world in supporting their industry development strategies and that sentiment has been shared by the UK government as well...We believe that the creation of an e-commerce trading network for SMEs, offered through the IT Hubs/BizWorldPro project provides rapid growth of new players in industries across the spectrum."
