Harbinger Acquires EDI Works!
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EDI Works!, a Houston, TX-based provider of e-commerce outsourcing services, will become part of Harbinger's Professional Services and Outsourcing Practice.
The owners of EDI Works! received 129,665 shares of Harbinger common stock for all of their outstanding equity interest in EDI Works! The transaction will be accounted for under the pooling of interests method of accounting, and Harbinger said it expects to incur transaction related charges totaling $500,000 to $750,000 in the first quarter of 1998.
"Many of Harbinger's customers are moving towards outsourcing their electronic commerce applications. Among the reasons they are choosing to do so are the complexity of integrating e-commerce with their existing systems, the ability to implement e-commerce quicker and for less cost, the ability to leverage outside knowledge and expertise, and finally the scalability that an outsource partner can provide," said James Davis, Harbinger president and chief operating officer.
"By combining with Harbinger, we can leverage our successful outsourcing model to a larger customer base that can benefit from this service," said Carol Croom, Managing Partner of EDI Works! "Since we already work with large corporations using Harbinger's TrustedLink software, this acquisition combines complementary capabilities."