Company Centralizes Focus on Enterprise Maintenance Services Business
ALEXANDRIA, Va., July 1 /PRNewswire-FirstCall/ -- Halifax Corporation
(Amex: HX) today announced that it has sold its Secure Network Services
business to INDUS Corporation for $12.5 million in cash, subject to
adjustment. The sale, effective today, includes all assets of the business
including associated contracts and certain liabilities.
Charles McNew, president and chief executive officer, stated, "Although
the Secure Network Services business generated $13.6 million in annual
revenues for our most recent fiscal year, it does not fit into our core
enterprise maintenance strategy. Additionally, the infusion o f cash
significantly strengthens our balance sheet and expands our options."
The sale was simultaneously signed and closed under an asset purchase
agreement, in which Halifax has sold substantially all of the assets and
certain liabilities of the Secure Network Services division for $12.5 million,
subject to certain adjustments and holdbacks described in the agreement among
the parties. The Secure Network Services division provides infrastructure
support services (voice, data and video) for secure environments.
He added, "The contracts and customer relationships of the Secure Network
Services business will be valuable to INDUS, as it continues to expand its IT
services work for the federal government. I'm confident that INDUS not only
will continue to provide a high level of service and support to our customers,
but that it will offer greater opportunities for growth for our employees and
suppliers given its exclusive focus on the federal marketplace."
BB&T Capital Market | Windsor Group served as the exclusive financial
advisor for Halifax in this transaction. Reference is made to the Company's
current Report on Form 8K to be filed with the Securities and Exchange
Commission, for additional information on the transaction.
Since 1993, INDUS Corporation has provided sophisticated IT solutions to
the federal government. INDUS specializes in mission-critical initiatives for
such government agencies as NASA, EPA, the Departments of Transportation,
Commerce, Health and Human Services, Education, Homeland Security and Defense,
as well as the intelligence community. INDUS is supporting federal customers
in over 50 locations throughout the United States. For more information,
visit http://www.induscorp.com.
Founded in 1967, Halifax Corporation is an enterprise maintenance
solutions company providing a wide range of technology services to commercial
and government customers throughout the United States. The Company's
principal products are high availability hardware maintenance services,
technology deployment and integration services. More information on Halifax
can be found at http://www.hxcorp.com.
Certain statements made by the Company which are not historical facts may
be considered forward-looking statements, including, without limitation,
statements as to trends, management's beliefs, views, expectations and
opinions, which are based upon a number of assumptions concerning future
conditions that ultimately may prove to be inaccurate. Such forward-looking
statements are subject to risks and uncertainties and may be affected by
various factors described in the Risk Factors Section in the Company's Annual
Report on Form 10-K that may cause actual results to differ materially from
those in the forward-looking statements. For further information that could
affect the Company's financial statements, please refer to the Company's
reports filed with the Securities and Exchange Commission.
SOURCE Halifax Corporation
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Related links:
http://www.hxcorp.com
http://www.induscorp.com
Company News On-Call:
http://www.prnewswire.com/comp/391950.html
CONTACT:
Karen Vahouny of Qorvis Communications,
+1-703-744-7809 or kvahouny@qorvis.com, for Halifax Corporation
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