Acquisition of AlphaNational Expected to be Accretive;
Will Strengthen Nationwide Service Delivery Base
ALEXANDRIA, Va., Oct. 4 /PRNewswire-FirstCall/ -- Halifax Corporation
(Amex: HX) today announced that it has acquired AlphaNational Technology
Services, Inc., a nationwide hardware maintenance services company located in
Fort Worth, Texas. Founded in 1992 and privately held, AlphaNational provides
high-availability maintenance services to a prestigious roster of nationwide
customers.
Halifax acquired all of the outstanding stock of AlphaNational for
approximately $1.9 million, excluding earnout arrangements, in which an
additional $150,000 in cash or Halifax common stock could be earned over the
next twelve months if certain agreed upon financial targets are met. The
purchase price is comprised of 235,294 shares of Halifax common stock,
$200,000 cash, and $500,000 of notes payable, of which $100,000 has a term of
90 days and $400,000 has a term of 18 months. The interest rate on the notes
is 6% per annum. The purchase price is also subject to possible adjustment
resulting from AlphaNational financial information to become available 45 days
after closing.
Charles McNew, president and chief executive officer, of Halifax stated,
"We expect this acquisition to be immediately accretive to earnings and expect
that revenues for the second half of fiscal 2005 will increase by 10 to 12%.
The acquisition adds several new important AlphaNational customers, expands
our geographic base and increases the breadth of our product serviceability."
He added, "We are pleased to welcome AlphaNational to the Halifax family.
This represents another important step in positioning our Company as a
recognized leader in the enterprise maintenance solutions marketplace.
"We are particularly pleased to add Larry Whiteside, president of
AlphaNational, to our executive management team. A respected industry
veteran, Larry will have responsibility for certain key customer relationships
and major support functions."
McNew noted, "Halifax plans to continue on our recent path of growth, both
internally and externally. We have recently announced major new contracts and
extensions, and we will continue to pursue meaningful new opportunities, with
the goal of enhancing long-term shareholder value."
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, and secure network program
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 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
Company News On-Call:
http://www.prnewswire.com/comp/391950.html
CONTACT:
For investor relations information: Karen
Vahouny of Qorvis Communications, +1-703-744-7809, or
kvahouny@qorvis.com, for Halifax Corporation
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