Thinking Tools, Inc. Acquires GVI Security, Inc.
Monday February 23, 9:01 am ET
Acquisition Positions Thinking Tools in $2.9 Billion Video Surveillance Market
NEW YORK--(BUSINESS WIRE)--Feb. 23, 2004--Thinking Tools, Inc. (OTCBB:TSIM - News) announced today that it has acquired GVI Security, Inc., which operates under the name of Samsung CCTV. The acquisition places Thinking Tools in the fast-growing homeland security market with a significant position that leverages management's high technology experience in consumer and industrial security.
GVI, headquartered in Carrollton, Texas, is the exclusive distributor of Samsung Electronics video security products in both North and South America and the Caribbean, and distributes video surveillance and other security products to wholesale distributors and consumers. GVI's security products include both proprietary GVI solutions and Samsung Electronics components. Combined, the GVI offering integrates all the technology necessary for complete facility video and security monitoring solutions, including access control, cameras, lenses, accessories, multiplexors, DVRs and software and control systems. Established in 2000, GVI has grown rapidly, generating approximately $56 million in revenue in calendar 2003, up from $37 million in 2002 and $18 million in 2001.
In connection with the acquisition, Thomas Wade, President and Chief Operating Officer of GVI, joined Thinking Tools as President, Chief Operating Officer and a director.
"I am pleased to be joining Thinking Tools," said Wade. "The acquisition of GVI strategically focuses Thinking Tools on the fast-growing government and Fortune 1000 markets. GVI brings to Thinking Tools strong relationships with world-class manufacturers of video surveillance products, its own proprietary products, and an experienced management team with a rich heritage in marketing high technology industrial life safety and security solutions.
"This is a first step in building a platform for growth. We are continuing to focus our expansion on adjacent product categories in the $57 billion homeland security market, leveraging the experience of our management team and board of directors," added Wade.
Thinking Tools acquired GVI by merging GVI with and into a newly formed wholly-owned subsidiary. In the merger, the former stockholders of GVI were issued shares of a new class of Thinking Tools preferred stock that upon conversion will constitute 95% of the outstanding shares of Thinking Tools common stock on a fully-diluted basis.
About Thinking Tools: Through its acquisition of GVI, Thinking Tools provides complete video surveillance solutions to the fast-growing retail, business-to-business, professional, and homeland security market segments. The Company is the exclusive distributor of Samsung Electronics video security products in both North and South America and the Caribbean, and distributes video surveillance and other security products to wholesale distributors and consumers. The Company also serves the import, support, marketing, inventory, warranty and distribution needs of Samsung and several other high technology manufacturers.
Some of the statements made by Thinking Tools, Inc. in this press release are forward-looking in nature. Actual results may differ materially from those projected in forward-looking statements. Thinking Tools believes that its primary risk factors include, but are not limited to: reliance on primary supplier; effective integration of recently acquired operations and personnel; expansion risks; effective internal processes and systems; the ability to attract and retain high quality employees; changes in the overall economy; rapid change in technology; the number and size of competitors in its markets; law and regulatory policy; and the mix of products and services offered in the company's target markets.
Thinking Tools, Inc.
Nazzareno Paciotti, 972-245-7353
CCG Investor Relations
Crocker Coulson, 818-789-0100
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