Commerce Solutions Provider Acquires Seven Companies Nationwide;
Company Also Notes Official Completion of Name Change
DENVER, July 26 /PRNewswire/ -- Executing on its promise to pursue an
aggressive growth strategy for 1999, RMI.NET, Inc. (Nasdaq: RMII), a national
e-business and convergent communications company, noted today that during the
first half of 1999 it acquired seven companies for $9.6 million.
(Photo: http://www.newscom.com/cgi-bin/prnh/19990628/RMILOGO )
Douglas Hanson, chairman and chief executive officer for RMI.NET, said the
company would continue to pursue growth through strategic acquisitions
throughout the remainder of 1999. The seven companies acquired -- which
include Internet service providers (ISPs), enhanced voice service operations,
a nationwide Internet backbone provider and software development companies --
have combined, annualized revenue run rates of $14.5 million.
"We are doing what we said we were going to do," Hanson said. "We stated
at the beginning of the year that we would grow our customer base, and expand
our products and services portfolio, through strategic acquisitions. Through
our aggressive and well-executed strategy, we are repositioning our company as
a national commerce solutions provider from that of a regional ISP."
The acquisition pace for 1999 actually continues a trend from the second
half of 1998. Since June 1998, RMI.NET has acquired 13 companies for
$22.8 million. The expected annualized revenue run rates of these
13 companies is $21 million.
"As with any acquisition, we know that there are challenges ahead of us in
terms of integrating the various operations we have acquired," Hanson said.
"We will be successful, however, because we have taken the time to find the
best companies to acquire as part of our growth strategy. We have further
developed and utilized a comprehensive due diligence and integration process
that allows us to identify potential difficulties. This will allow us to
efficiently bring all of the companies we acquire into the overall
corporation."
Through its acquisition strategy over the past 12 months, RMI.NET has been
able to acquire a proprietary portal site and search engine, Infohiway; a
revolutionary domain registration service for companies, called Simplified
Domains; and software development firms that will help its
business-to-consumer and business-to-business e-commerce efforts.
The following is a list of the companies acquired in the past year by
RMI.NET:
Annualized
Purchase Revenue
Date Company Location Price Run Rate
1998
June 5 Infohiway(1) Aurora, Colo. $1.34 million n/a
July 1 Application
Methods(2) Seattle $3.24 million $1.70 million
Nov. 11 InternetNow! Phoenix $1.88 million $1.20 million
Nov. 24 Unicom Overland
Internet Park, Kans. $1.70 million $1.00 million
Dec. 1 Stonehenge
Internet Denver $750,000 $650,000
Dec. 9 DataXchange(3) Washington, D.C. $4.30 million $2.00 million
TOTAL $13.2 million $6.55 million
1999
Feb. 2 Dave's World Bloomington, Ill. $3.00 million $1.90 million
Feb. 9 CNS(4) Opelika, Ala. $560,000 $3.60 million
June 10 Internet
Connect Salt Lake City $1.50 million $1.20 million
June 11 IdealDial(4) Denver $1.74 million $6.70 million
June 16 Colo. Steamboat
Mountain Net Spr., Colo. $970,000 $675,000
June 23 CommerceGate(2)Seattle $1.25 million n/a
June 25 Interaction
On-Line Peoria, Ill. $570,000 $385,000
TOTAL $9.59 million $14.5 million
12-MONTH TOTAL $22.8 million $21.0 million
(1) Portal Site and Search Engine; (2) E-commerce, Software Development
Company; (3) Tier 1 Internet Backbone Provider; (4) Enhanced Voice Services
Providers.
RMI.NET also announced today that it is no longer pursuing the purchase of
two telecommunications companies that had filed for Chapter 11 bankruptcy in
March 1999, UStel, Inc. and Arcada Communications, Inc. RMI.NET had announced
in April 1999 that it entered into agreements to purchase both companies
subject to certain contingencies, including approval of the bankruptcy court
and absence of a higher offer.
In related news, company shareholders at the June 24, 1999 annual meeting
officially approved changing the name of the company to RMI.NET, Inc., from
Rocky Mountain Internet, Inc. Amended and restated certifications of
incorporation for the company's name change also were completed and approved
July 8, 1999.
RMI.NET, formerly Rocky Mountain Internet, is a Denver-based e-business
and convergent communications company focused on providing a single-source
network of Internet and telecommunication solutions for small to medium-size
businesses, small office/home office (SOHOs) and consumer households. RMI.NET
possesses the full spectrum of tools needed to effect the realization of
e-business and converging communications -- from commerce-enabled web design,
hosting and marketing to dial-up and dedicated Internet access and local,
long-distance and IP telephony. RMI.NET also wholly owns a proprietary portal
site and search engine, Infohiway, at http://www.infohiway.com. For more information
call 1-800-864-4327, or visit the Company's web site at http://www.rmi.net.
This press release might contain forward-looking statements. These
forward-looking statements are subject to risks and uncertainties. Actual
results may differ materially from such forward-looking statements as a result
of risks and uncertainties which are described in the cautionary statements
section of the company's 10K dated December 31, 1998, and may include other
risks described in all Securities and Exchange Commission filings submitted as
of this date.
SOURCE RMI.NET, Inc.
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Related links:
http://www.rmi.net
Photo Notes:http://www.newscom.com/cgi-bin/prnh/19990628/RMILOGO
For assistance: PR Newswire Photo Desk, 888-776-6555 or
201-369-3467
CONTACT:
Mark Stutz of RMI.NET, Inc., 303-313-0672,
mark.stutz@corp.rmi.net
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