HOUSTON, March 27 /PRNewswire/ -- CORESTAFF, Inc. (Nasdaq: CSTF), one of
the largest national providers of information technology and staffing
services, today announced it has acquired by merger, Metamor Technologies,
Ltd., a Chicago-based systems integration company. Metamor has offices in
Chicago, Ill. and Nashville, Tenn. and is projected to have gross revenues for
fiscal year 1997 of more than $30 million. Irvin M. Shapiro, Metamor's
founder and president, and his senior management team will continue to operate
and manage the business after the closing. Other terms of the transaction
were not disclosed.
Metamor provides a broad range of strategic information technology
services to its clients, with primary focus on assisting in the transition
from older technologies to state-of-the-art platforms and products. Metamor's
five key practice areas are: (1) project-oriented development of mission
critical business solutions; (2) integrated systems support services, which
include outsourcing, Internet and intranet services, firewall construction and
leasing space on Internet client/servers; (3) custom software development,
involving the implementation of new technologies; (4) design of client/server
networks and architecture and (5) training services in a variety of leading
edge protocols and technologies.
Along with its recently announced agreement to acquire Business Management
Data and its affiliate, Sriven Computer Solutions, which, together, provide
critical long-term code maintenance and offshore client/server development
services, CORESTAFF's "solutions practices" line of business is projected to
have 1997 gross revenues of more than $60 million. Since January 1, 1997,
CORESTAFF has announced the acquisition or proposed acquisition of three
companies with projected 1997 gross revenues of approximately $100 million.
In commenting on the transaction, Michael T. Willis, CORESTAFF's president
and CEO, stated, "Metamor represents CORESTAFF's second acquisition in the
information technology solutions (ITS) practices sector and our first
acquisition in the custom development and project management area. Metamor is
expected to be a platform from which we will build a national practice in the
higher margin and growth ITS sector. The practices, methodologies and people
that Irv Shapiro and his management team have developed will support the
acquisition of similar companies in the same practice areas as Metamor."
Willis stated further, "Metamor has been selected by Microsoft as one of
20 companies, out of 5,500 authorized Microsoft Solution Providers in the
United States, to be a member of Microsoft's Partner Advisory Council (PAC).
PAC assists Microsoft in the creation of strategic decisions as they relate to
Microsoft Solutions Providers. In addition to Microsoft, Metamor maintains
strategic alliances with Digital Equipment Corp., Netscape, Novell and all
major database vendors."
Commenting further, Willis stated, "Metamor and other solutions practices
and outsource information technology companies acquired by CORESTAFF will be
operated separately and apart from CORESTAFF's IT staff augmentation line of
business. However, we believe Metamor will benefit from its ability to obtain
`just-in-time human resources' from COMSYS Information Technology Services.
COMSYS currently supports EDS on a national basis, along with ISSC and
Andersen Consulting as they staff their assignments with trained, qualified
consultants. The single largest constraint on growth for consulting and
solutions practices companies is the shortage of qualified consultants.
CORESTAFF believes that COMSYS will be another tool Metamor can use to solve
this limitation on growth."
Established in 1993, CORESTAFF, Inc. has quickly become one of the largest
national providers of information technology and staffing services through its
two key operating units: COMSYS Information Technology Services and CORESTAFF
Services. In 1997, CORESTAFF launched a third line of business, Information
Technology Solutions, which is projected to have 1997 gross revenues of more
than $60 million. The Company, with pro forma revenues in excess of
$840 million, operates approximately 140 branches across the United States and
has operations in the United Kingdom and India.
Except for historical information, all of the statements, expectations
and assumptions contained in the foregoing are forward-looking statements that
involve a number of risks and uncertainties. Although the Company has used
its best efforts to be accurate in making those forward-looking statements, it
is possible that the assumptions made by management may not materialize. In
addition, important factors which would cause results to differ materially are
set forth under the caption "Risk Factors" in the Company's annual report on
Form 10-K, a copy of which is available upon request from CORESTAFF's investor
relations department.
SOURCE CORESTAFF, Inc.,
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CONTACT: Austin P. Young, EVP, or Edward L. Pierce, CFO, of CORESTAFF, Inc., 713-961-3633, or Marilyn Windsor, General Inquiries, 312-640-6692, or Janine Warell, Analyst Inquiries, 312-640-6775, or Laura Kuhlmann, Media Inquiries, 312-640-6727, all of The Financial Relations Board
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