Burntsand Concludes Acquisition of Altro Solutions
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[Vancouver, CANADA] Burntsand (TSE: BRT) has closed the previously announced acquisition of all of the outstanding securities of San- Jose based Altro Solutions.
Burntsand has completed the acquisition of all of the outstanding securities of Altro for approximately Cdn $14,800,000 (US $21,904,000) in cash, 3,397,245 common Burntsand shares, and options to acquire up to a further 770,000 common shares of Burntsand.
Altro has over 80 employees located in offices in San Jose and New York. Its revenue growth rate has averaged 75 percent over the past 2 years.
It is anticipated that the combined firm will begin the 2001 fiscal year with a revenue run rate of approximately Cdn $100 (US $148) million.
Altro's clients include such organizations as American Express, AT&T, Cisco Systems, Documentum, F Hoffman-LaRoche, Intel, MCI Worldcom and Shering-Plough.
"Burntsand's objective is to continue to build and grow a world-class organization capable of generating significant value for clients, employees and shareholders," said Jim Yeates, Burntsand chairman and chief executive officer.
"The management team at Altro will allow us to have a solid platform for growth and expansion in the US North East and California business corridors, complementing our offices in Houston and Denver. Altro's expertise in automated content management, Web publishing, and personalization along with e-commerce will be leveraged throughout other Burntsand business units."
Yeates said the Altro business model is totally complementary and consistent with Burntsand's strategic assessment of what is needed to succeed in the high growth e-business solutions marketplace.
"Altro and Burntsand have similar track records in the successful delivery of highly complex e-business solutions. Burntsand's customer-facing B2B business model creates the contact engine for highly valuable content, especially in Burntsand's focus areas of e-commerce, customer relationship management, automated trading exchanges and business intelligence structures, said Joseph Garappolo, Altros founder and president.