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Midas Medici Sells StraTech to Datalink Corporation for $20.25 million
Oct 05, 2012 (04:10 PM EDT)
CARY, N.C. and NEW YORK, Oct. 5, 2012 /PRNewswire/ -- StraTech, a wholly-owned operation subsidiary of Midas Medici Group Holdings, Inc. (OTCQX: MMED) ("Midas Medici" or "the Company"), today announced the closing of the transaction to sell the majority of StraTech's assets to Datalink Corporation (NASDAQ: DTLK) ("Datalink") for approximately $20.25 million. The transaction was announced on October 2, 2012 and approved by the board of directors of both Datalink and Midas Medici.
Datalink purchased StraTech for a consideration of $20.25 million including the issuance of 269,802 shares of Datalink common stock, and subject to certain adjustments based on acquired assets and liabilities. Datalink assumed approximately $20.8 million of StraTech's liabilities and acquired approximately $16.0 million of assets. As part of the transaction, Midas Medici also retained StraTech's real-estate portfolio assets valued at $5.0 million and entered into a lease with Datalink for part of the available square footage. The closing of this transaction is subject to a final audit expected to be performed within the next 90-120 days.
Midas created an attractive business that is well positioned to help drive Datalink's growth through:
"We are pleased with the strategic sale of our StraTech business," said Nana Baffour, CEO and co-founder of Midas Medici and executive chairman of StraTech. "For the past two years, we have successfully grown StraTech and attracted several marquee customers to the organization, which Datalink considers to be valuable assets. We were able to do this in the midst of an economic recession as well as the significant adverse impact of SUN's acquisition by Oracle. By deploying some of the proceeds of this sale towards the growth of our Cimcorp operations in Brazil, we envision a similar growth trajectory for our Brazilian operations in the coming years. Additionally, in our efforts to maximize returns for our shareholders and continue with our profitable stewardship of company assets, proceeds from the transaction will be used for debt reduction and optimization of core strategic assets. We have the utmost confidence that Datalink will continue to serve StraTech's customers well and leverage StraTech's national sales team to enhance their overall growth and profitability."
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Forward Looking Safe Harbor Statement
This press release contains forward-looking statements that involve risks and uncertainties, including statements related to Midas Medici Holding's public offering of common stock and the completion of the offering. These forward-looking statements are based upon Midas Medici's current expectations. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of risks and uncertainties, which include, without limitation, risks and uncertainties associated with market conditions and the satisfaction of customary closing conditions related to the proposed offering and other risks detailed in Midas Medici's filings with the Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. There can be no assurance that Midas Medici will complete the offering of shares of common stock. All forward-looking statements are qualified in their entirety by this cautionary statement, and Midas Medici undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this press release.
SOURCE Midas Medici Group Holdings, Inc.