TORONTO, Sept. 28, 2005 (PRIMEZONE) -- ActiveCore Technologies, Inc. (OTCBB:ATVE) announced today that it has retained the services of Pathpoint Capital to assist in the identification and financing of a strategic acquisition. It is contemplated that the two parties will target several U.S. based organizations that ActiveCore considers to be synergistic with its core business, and that any transaction which gets consummated will be debt financed.
Pathpoint recently completed a due diligence investigation of ActiveCore, prior to determining that they would proceed with this engagement. This exercise encompassed financial and operations reviews, as well as an evaluation of the Company's new management group and their strategic direction.
Bryan Keeler, partner at Pathpoint, commented "The directional decisions and strategic acquisitions made over the last year have positioned Activecore for the next level of growth. We are pleased to be associated with what we see as a strong, experienced new management group."
Pathpoint and ActiveCore have already initiated discussions with potential targets. Although no firm date has been set to complete a transaction, ActiveCore indicated that this process would likely extend until early 2006.
With respect to the types of companies being considered as potential acquisition targets, the Company is currently examining a number of possibilities presented by Pathpoint, but acknowledged that the most logical move would be to add new revenue to its corporate messaging business to help bring the CDM division more in-line with the current size of its SIM division. Recent M&A transactions involving corporate messaging businesses have commanded impressive revenue and earnings multiples, primarily due to the high margins and recurring revenue model the underlying business can deliver.
Peter Hamilton, CEO of ActiveCore elaborated, "We anticipate that the next strategic move ActiveCore makes will be a sizable one. As indicated through recent press releases, we are pleased with the current status of our existing businesses, and we feel we are ready as an organization to take a next step. Although there are numerous variables impacting our evaluation process of potential targets, we would certainly like to be able to add a minimum of $5 million -- $10 million USD of profitable revenue by early 2006."
About ActiveCore Technologies, Inc. (www.ActiveCore.com)
ActiveCore Technologies, Inc., operates a group of subsidiaries and divisions in the U.S., U.K. and Canada that offer a Smart Enterprise Suite of products and services. We integrate, enable, and extend functions performed by current and legacy IT systems. Our products encompass Web portals, enterprise middleware, mobile data access, data management and system migration applications. The Systems Integration & Modernization Division of ActiveCore operates under the trade names of CRATOS and MDI Solutions. The Corporate Disclosure and Messaging Division of ActiveCore operates under the trade names C Comm Network Corporation, DisclosurePlus and ActiveCast. ActiveCore services clients in healthcare, financial services, government and manufacturing worldwide.
About Pathpoint Capital Partners: Pathpoint is a Bay Street, Toronto Investment Bank specializing in the capital sourcing needs in small and middle market enterprises in Canada. Recently, Pathpoint completed a $16 million financing for Canadream Corporation,(TSX-V:CDN).
Statements contained in this news release regarding ActiveCore Technologies, Inc. (formerly IVP Technology) and planned events are forward-looking statements, subject to uncertainties and risks, many of which are beyond ActiveCore's control, including, but not limited to, reliance on key markets, suppliers, and products, currency fluctuations, dependence on key personnel and trade restrictions, each of which may be impacted, among other things, by economic, competitive or regulatory conditions. These and other applicable risks are summarized under the caption "Risk Factors" in ActiveCore's Registration Statement on Form SB-2 filed with the Securities and Exchange Commission on January 4, 2005. Forward-looking statements by their nature involve substantial risks and uncertainties. As a result, actual results may differ materially depending on many factors, including those described above.