AUSTIN, TX and MINNEAPOLIS, MN - Oct. 31 - Perficient, Inc. (Nasdaq: PRFT) a leading eBusiness solutions provider to Global 2000 and major midsize companies, and Javelin Solutions, Inc., a privately-held eBusiness solutions firm based in Minneapolis, announced today that they have signed a definitive merger agreement under which Perficient will acquire Javelin. The deal, which is expected to be accretive to earnings, will create a profitable eBusiness services leader with annual sales in excess of $30 million, more than 225 staff in six offices across North America and Europe and client relationships with over 250 Global 2000 and midsize companies.
"We continue to execute our focused plan to build the dominant eBusiness solutions provider in the Midwestern and Southwestern US,’’ said Jack McDonald, Chairman and Chief Executive Officer, Perficient. "Minneapolis is an attractive market where we intend to invest and grow. Moreover, there's a tremendous opportunity to leverage Javelin's agribusiness and banking expertise on a national, and international level."
Javelin's owner-managers, all veterans of large consultancies, will be assuming senior roles at Perficient following the closing of the transaction. Dale Klein will assume the role of chief corporate development officer, as well as continuing as general manager of the Minneapolis office. Warren Golla will become managing director of Perficient's national commodities markets practice, serving leading companies in the agribusiness and energy industries. Both will report to Jeff Davis, the Arthur Andersen veteran who serves as Perficient’s COO. Ken Faanes, Jon Waddell and Tim Huenemann will assume key business development and technology roles.
"This transaction makes compelling sense for our clients and our people,’’ said Dale Klein, Chief Executive Officer of Javelin Solutions. "Javelin's existing clients can expect the same outstanding service they currently receive as key executives, account managers, technologists and project managers will continue to play prominent roles in the new company. We can offer our clients a broader and stronger array of services.’’
The terms of the agreement call for Perficient to issue up to 2.216 million shares of Perficient stock and $1.5 million in notes to Javelin's shareholders, subject to satisfying certain conditions in the first year following the closing of the transaction. The deal, subject to various conditions including approval by Perficient’s shareholders, is expected to close by the first quarter of 2002. WWC Capital Group of Reston, VA served as an advisor to Perficient on the deal.
About Perficient
Perficient, a leading eBusiness solutions provider to Global 2000 and major midsize companies, enables its clients and partners to optimize profitability and strengthen customer relationships through reliable, quick-to-market eBusiness solutions. Perficient employs more than 175 professionals in five offices in the United States, Canada and Europe. Perficient’s partners are leading eBusiness technology and services providers including IBM, Sun, Microsoft, Oracle, Digex, Vignette, Stellent, Autonomy and Interwoven. For more information, visit Perficient’s Web site at www.perficient.com.
About Javelin Solutions
Javelin Solutions, Minneapolis’ premiere technology solution provider, partners with Global 2000 companies and innovative start-ups to provide engaging and profitable technology solutions. Through strategic e-business direction, online branding and marketing, Internet technology, and managed services, Javelin Solutions manages the most complex e-business challenges. Javelin, headquartered in Minneapolis, MN, provides e-business solutions for clients Louis Dreyfus, Union Bank of California, Cargill, USBank, and DirectAg.com, among others. For more information about Javelin Solutions, visit www.javelinsolutions.com.
Safe Harbor Statement
"Safe Harbor’’ statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking statements, particularly with respect to our ability to complete and successfully integrate the Javelin Solutions, Inc. acquisition and other acquisitions, the expectation that the proposed transaction is expected to be accretive to earnings, the combined annual sales of the companies and the size, strength and effectiveness of the combined companies that are subject to risk and uncertainties, including, but not limited to, the impact of competitive services, demand for services like those provided by the Company and market acceptance risks, fluctuations in operating results, cyclical market pressures on the technology industry and other risks detailed from time to time in the Company’s filings with Securities and Exchange Commission. Our reported results may be subject to adjustments, reserves, and other items that may be identified during the normal year-end audit process. This release does not constitute an offer to sell any securities of the Company.