The Evermedia Group Signs Letter of Intent to Acquire Stake in Defense Contracting Company
NEW YORK, NY, May 12, 2009 (MARKETWIRE via COMTEX) -- The Evermedia Group, Inc. (PINKSHEETS: EVRM) announces it has entered into a Letter of Intent to acquire a significant equity position in STS Evermedia Corporation, the holding company of System Technology Solutions, Inc. (STS). The deal structure will allow The Evermedia Group to immediately acquire 37% of SEVM with the possibility of acquiring additional shares to become the majority shareholder if certain financial, personnel and valuation conditions are met. Both companies will operate as separate and distinct entities but will enter into exclusive and non-exclusive agreements to support joint defense related and security contracting efforts. The overarching goal is to improve corporate alignment and processes, streamline operations and administration, and further develop contracting relationships.
"Although we decided to split operations last year, allowing each company to focus on its respective core business, we have maintained a close and unique connection. We expect the government to continue investment in security, information technology, and infrastructure, and accordingly, it only makes sense to enhance our relationship and continue our work together," said Jonathan Sym, CEO of The Evermedia Group and STS Evermedia Corporation. "Since last year, STS's revenues have experienced significant growth. They have won key contracts and task orders as well as joining several teams with Fortune 1000 companies. I think by the end of 2010, STS can possibly exceed $10,000,000 in revenues."
According to the U.S. Small Business Administration, the Federal Government is the largest buyer of goods and services with purchases totaling more than $425 billion per year. Federal agencies are required to establish contracting goals with at least 23% of all government-buying targeted to small firms. This government initiative includes the Biometric Operational Support and Services-Unrestricted (BOSS-U) Contract. BOSS-U carries a dollar value ceiling of $497 million and stipulates a small business participation goal of 25%. Under BOSS-U, Evermedia Biometrics will provide support services as needed to EDS, an HP Company.
System Technology Solutions, Inc., a subsidiary of STS Evermedia Corporation, is a San Antonio, TX based defense contractor providing engineering, logistics, IT and security services to government and large commercial enterprises. STS also provides technical design, program management and security services globally.
For additional information:
Evermedia Biometrics Corporation
SOURCE: The Evermedia Group, Inc.
CONTACT: mailto:email@example.com http://www.evermediagroup.com
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SUBJECT CODE: Government:Security (law enforcement, homeland etc)
Aerospace and Defense:Weapons http://www.pinksheets.com/pink/quote/quote.jsp?symbol=evrm#getNews