Kanata, Ontario, September 7, 2004: Calian Technology Ltd. (TSX: CTY) is pleased to announce that it has completed the acquisition of Titan Consulting Group Ltd.
Titan has revenues of $10 million and specializes in areas of Enterprise Resource Planning, Customer Relationship Management, Data Warehousing & Business Intelligence, Supply Chain Management and Integration/Information Technology. Titan has a solid track record of delivering skilled SAP, PeopleSoft, Oracle and Seibel professionals to Industry and Government on a per diem basis.
The acquisition is based on book value plus a multiple of 4.5 times Titan's Earnings Before Interest, Taxes and Amortization (EBItdA) of up to $1.6 million and 1 times EBItdA in excess of $1.6 million. for the period September 1, 2004 to August 31, 2005.
"This acquisition will be accretive, generating additional earnings per share in fiscal 2005 of 4 to 6 cents," stated Jacqueline Gauthier, Vice-President and Chief Financial Officer. "The total value of the acquisition is expected to be in the range of $6 to $8 million and will be satisfied with 90% cash and the balance through the issuance of Calian common shares. Calian will pay a total of $4.3 million in cash on closing with the balance of the cash and the Calian common shares to be calculated and paid during the first 6 months of fiscal 2006. The common shares will be issued at the then-prevailing market prices.
"When you couple Calian's business expertise and numerous standing offer contracting vehicles with Titan's expertise in sales and delivery it becomes clear that this transaction is an ideal fit for our company" stated Anthony Scaletta, President of Titan. "We are delighted to be working with Calian where we can share the same high business values as we have been building in Titan."
"The Titan Team uses the same economic business model as we do," stated Tom Coates, VP and General Manager, Business and Technology Services Division. "And this means the combined groups will be able to provide even more cost effective services then ever before to our public and private sector clients. They have an impressive database of IT professionals that is an ideal match for the needs we see emerging within our existing market place and I am excited at the short and long term business prospects of this acquisition."
About Calian: Calian Technology Ltd. (TSX:CTY) sells technology services to industry and government in Canada and around the world. Calian provides customers with ready access to an exceptional team of engineers, telecommunications and technology professionals, and other highly qualified staff. The Business and Technology Services Division augments customer workforces with flexible short and long-term placements, recruitment and outsourcing of engineering and other skilled professionals. The Systems Engineering Division plans, designs and implements solutions for many of the world's space agencies and leading communications satellite manufacturers and operators, as well as providing contract manufacturing services for customers in North America.
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