Convergent Communications, Data Sales Company Reach Terms, Liberty Acquisition
Efforts Continue
MOUNDS VIEW, Minn., Jan. 31 /PRNewswire/ -- Liberty Enterprises has
announced it has agreed to terms with two major service providers as it
continues its efforts to acquire Cavion Technologies, Inc.
Convergent Communications Services, Inc. and Data Sales Company, Inc., two
of Cavion's most important business partners, have pledged to continue their
service commitment, under proposed new agreements, if Liberty's acquisition
efforts are successful. Liberty's acquisition decision is expected within the
next week.
Liberty, the credit union movement's leading provider of payment systems,
marketing services and technology solutions, has already signed a letter of
intent to purchase the assets of Cavion. Terms of the agreement have been
filed with the U.S. Bankruptcy Court for the District of Colorado, Denver.
Cavion filed for Chapter 11 bankruptcy protection on Dec. 21, 2000.
"We're encouraged by the response of these two important providers as we
move forward with our acquisition efforts," said Robert D. Anderson, president
& CEO of Liberty Enterprises. "The terms of our new tentative agreements would
allow us to remain committed to credit union service agreements, while at the
same time helping us reach our acquisition goals of positive cash flow and
break-even operating income."
Convergent Communications, Inc. (Nasdaq: CONV), through its wholly owned
subsidiary, Convergent Communications Services, Inc., is a leading broadband
networking and Web services provider with full-service communications
capabilities. The company specializes in delivering communications, networking
and Internet solutions. Convergent Communications operates a nationwide,
Cisco-based communications network and provided Cavion with broadband and Web
services and computer equipment. Under the terms of the proposed agreement the
company would provide Liberty and its 5,000 credit union customers with
broadband circuits, network monitoring, and Web security services.
"Our managed service capabilities for broadband network, Web, and data
equipment integration complement the solutions that Liberty Enterprises will
offer these credit union clients moving forward," said Joe Zell, president and
CEO of Convergent Communications. "We are encouraged with Liberty's
acquisition initiatives and we will work closely with them to create a smooth
transition for our customers."
Data Sales Company, headquartered in Burnsville, Minn., is a full service
dealer of business-essential equipment. Data Sales leased computer equipment
to Cavion. The company emphasizes that its customers stay ahead of the
high-tech curve with the necessary equipment, while growing their business
without taxing cash flow.
"We are pleased to have reached an agreement with Liberty as it proceeds
with efforts to acquire Cavion," said Paul Breckner, vice president of Data
Sales. "We have been impressed with Liberty's competence and commitment to
deploy this suite of Internet products and services to its expansive (credit
union) customer base."
Liberty's acquisition decision will be based on Cavion customer response
and commitment to new, three-year contracts by Jan. 31. The letter of intent
allows Liberty to withdraw its bid to purchase if customer response does not
meet Liberty's goals. As of today, Liberty has reached tentative agreement
with more than 60 of Cavion's more than 200 credit union customers, with more
commitments expected soon. Liberty's goal is 50 percent retention of Cavion's
credit union partners. If the goal is reached, Liberty will seek acquisition
approval by mid-February from the bankruptcy court with which Cavion has filed
for Chapter 11 protection.
"We're hopeful but still have some significant distance to go," said
Anderson. "We certainly have been impressed with the credit unions' positive
responses thus far."
Cavion offers secure Internet financial products and services designed
specifically for credit unions. An agreement would expand Liberty's offerings
to include Cavion's security-focused private network for credit unions,
CUiNET, and its Internet banking platform, CUiBanking, and its Members
Emporium Internet service.
The sale of Cavion would make the company part of Liberty, a 15-year-old
private, employee- and family-owned company with 920 employees. Liberty serves
5,000 credit unions in all 50 states, Guam and Puerto Rico.
About Liberty
Liberty partners with 5,000 credit unions in all 50 states, Guam and
Puerto Rico. Liberty's core product is the check, still consumers' leading
financial transaction vehicle. The company is the credit union movement's
leading provider of payment systems (checks, card services, financial
supplies), marketing services (database marketing, creative services,
outsource marketing, market research) and technology solutions (data
processing, Web-site development and hosting, Internet banking). Liberty is
headquartered in Mounds View, Minn., a suburb of Minneapolis-St. Paul. The
company has also established marketing centers in Los Angeles, St. Louis,
Minneapolis and Hartford, Conn.
About Cavion
Cavion Technologies offers products and services for secure
business-to-business communications and secure Internet financial products and
services designed specifically for the needs of credit unions. The company's
Internet software products include secure Internet access, online
transactional banking, cellular access, online bill payment, and online loan
decision products, along with enabling software for kiosks.
Cavion created a secure, private communications network called CUiNET
(Credit Union interactive Network) exclusively for the credit union industry.
CUiNET provides a secure, high-speed communications platform for the delivery
of services, transactions and information to and from credit unions and
related organizations, such as trade organizations, corporate credit unions
and credit union vendors. The company's headquarters are located at 6466
South Kenton Street, Englewood, CO 80111. Its telephone number is
720-875-1900.
This news release contains forward-looking statements. Cavion uses words
such as "anticipate," "believe," "expect," "future," "may," "will," "should,"
"plan," "projected," "intend" and similar expressions to identify
forward-looking statements. These statements are based on the company's
beliefs and the assumptions it made using information currently available to
it. Because these statements reflect the company's current views concerning
future events, these statements involve risks, uncertainties and assumptions.
The actual results could differ materially from the forward-looking
statements. Some, but not all, of the factors that may cause these
differences are discussed in the risk factors section of the company's
periodic filings under the Securities Act of 1933. In any event, you should
not place undue reliance on these forward-looking statements, which apply only
as of the date of this news release.
For more information, contact Rick Foy, Liberty Public Relations Manager
at 800-607-2435, ext. 2436.
SOURCE Liberty Enterprises
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Related links:
http://www.libertycheck.com
Company News On-Call:
http://www.prnewswire.com/comp/110839.html or fax,
800-758-5804, ext. 110839
CONTACT:
Media, Rick Foy, Public Relations,
800-607-2435, ext. 2436, Robert D. Anderson, President & CEO,
800-607-2435, ext. 2355, both of Liberty Enterprises; Jil Hicks,
Media Communications of Convergent Communications, 303-749-2970,
or Paul Breckner, Vice President of Data Sales Company, Inc.,
952-890-3206, ext. 320
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