AVSO news out on a aquisition which will "immediately increase Avatech's revenues as well as increase our profitability."
Avatech Solutions and Sterling Systems Intend to Combine; Acquisition Will Strengthen Avatech's Nationwide Reach
Business Wire - April 07, 2006 09:00
BALTIMORE & MADISON HEIGHTS, Mich., Apr 07, 2006 (BUSINESS WIRE) -- Avatech Solutions, Inc. (OTCBB:AVSO), the recognized leader in design and engineering, product lifecycle management, and facilities management solutions, and Sterling Systems and Consulting, the dominant design solutions provider in the upper Midwest, today announced that they have signed a letter of intent whereby Avatech will acquire Sterling Systems.
Founded in 1990 by principal Bruce White, Sterling Systems provides computer software and services for the civil engineering, manufacturing, and architectural industries. It has built a reputation for outstanding customer service with long-term client relationships. Sterling Systems has offices in Detroit, Indianapolis, Chicago, Cleveland, and Columbus.
"The addition of Sterling Systems and their dedicated team of experienced design industry professionals will add seasoned resources to our rapidly growing team, enabling us to serve more customers from more locations," said Scotty Walsh, Avatech's CEO.
"Our team is enthusiastic about joining forces with Avatech," said Bruce White. "With the resources of a dominant player in the design automation industry, we expect to accelerate growth and offer our customers access to an even greater breadth of solutions."
"Mergers and acquisitions are integral to Avatech's growth strategy," said Walsh. "From a financial point of view, the merger would immediately increase Avatech's revenues as well as increase our profitability."
The letter of intent reflects the agreement in principle of the parties to proceed to negotiate a definitive agreement. Closing is contingent upon numerous conditions, including approval by both companies' Boards of Directors and Sterling's owners, execution of definitive merger documents, financing arrangements, satisfactory due diligence, and other conditions.
About Avatech Solutions
Avatech Solutions, Inc. (OTCBB:AVSO) is the recognized leader in design and engineering technology with unparalleled expertise in design automation, data management and process optimization for the manufacturing, engineering, building design and facilities management markets. Headquartered in Owings Mills, Maryland, the company specializes in consulting, software systems integration and implementation, standards development and deployment, education, and technical support. Avatech is one of the largest integrators of Autodesk software worldwide and a leading provider of PLM solutions. The company's clients include industry leaders from Fortune 500 and Engineering News Record's Top 100 companies.
Visit www.avatech.com for more information.
About Sterling Systems
Founded in 1990, Sterling Systems & Consulting, Inc. is a leading provider for CAD and design technologies in the United States. Sterling Systems is known for delivering complete technology solutions including training, implementation, customization as well as software and hardware solutions. The company is headquartered in Madison Heights, MI with several regional offices.
