Published: February 21, 2006
VillageEDOCS to Acquire GoSolutions
VillageEDOCS (OTC BB: VEDO) today announced the
acquisition of privately held GoSolutions, a leading provider of business
information communications services. VillageEDOCS and GoSolutions executed
a definitive agreement on February 17, 2006. The acquisition of
GoSolutions is scheduled to be completed on February 28, 2006, subject to
the approval of GoSolutions' stockholders and other customary closing
conditions. When completed, VillageEDOCS' subsidiaries will include
GoSolutions, MessageVision, Resolutions, and TBS.
This acquisition, when closed, significantly strengthens VillageEDOCS. The
acquisition will be accretive in revenue, profit and operationally.
GoSolutions and VillageEDOCS each operate a hosted service with
MessageVision in the West and GoSolutions in the East. Both companies use
similar technologies. Bi-coastal operations will provide our clients
greater redundancy. VillageEDOCS' clients will benefit from GoSolutions'
suite of document and communication management solutions. GoSolutions'
clients will benefit from VillageEDOCS' Business Information Delivery
services. Prior to the acquisition, VillageEDOCS services included
E-Forms, Imaging / Archive solutions, Printing services and Municipality
Applications.
"GoSolutions has enjoyed financially stable growth for the past five years.
GoSolutions' strength comes from its core team of seasoned business and
technology professionals, who have developed innovative and cost-effective
hosted services which enable business to operate more efficiently
internally and with their trading partners. GoSolutions' leadership team
will be a great addition to VillageEDOCS in business operations,
technology, finance and marketing," said Mason Conner, President and CEO of
VillageEDOCS. In addition, the acquisition of GoSolutions by VillageEDOCS
will provide VillageEDOCS the financial strength to accelerate future
acquisition plans and broaden investor liquidity.
"VillageEDOCS brings GoSolutions' clients a broad spectrum of Business
Information Delivery solutions. We are excited about the greater potential
for liquidity for our shareholders and the opportunity to be a part of a
more significant solution provider to our current and future clients," said
Thor Bendickson, CEO of GoSolutions.
The combined companies expect to be able to take advantage of a number of
revenue synergies by expanding marketing opportunities through:
-- expanding exciting, effective offerings to our combined customer
bases;
-- integrating GoSolutions' services throughout the MessageVision,
Resolutions, and Tailored Business Systems offerings; and,
-- taking advantage of the increased scale and momentum provided by this
acquisition.
"We believe that our acquisition of GoSolutions will fit our strategic
vision and will be instrumental in improving the long-term value of
VillageEDOCS in the public market," said Michael Richard, Chief Financial
Officer of VillageEDOCS.
About GoSolutions
GoSolutions Enhanced Services Platform (ESP) offers a robust, flexible and
cost-effective means of delivering leading edge, speed-to-market Business
Information Delivery solutions. GoSolutions' services are specifically
targeted to meet the unique demands of small and large Service Providers
(SPs) and Direct Sales Organizations (DSOs).
About VillageEDOCS
VillageEDOCS, through our MessageVision subsidiary, is a leading provider
of comprehensive business-to-business business information delivery
services and products for organizations with mission-critical needs,
including major corporations, government agencies and non-profit
organizations. Through our Tailored Business Systems subsidiary, we
provide accounting and billing solutions for county and local governments.
Through our Resolutions subsidiary, we provide products for document
management, archiving, document imaging, imaging software, document
scanning, e-mail archiving, document imaging software, electronic forms,
and document archiving. For further information, visit our website at
www.villageedocs.com.
Cautionary Statement Regarding Forward-Looking Information
All statements in this press release that do not directly and exclusively
relate to historical facts constitute forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Statements made in this press release, including those relating to the
completion of the acquisition of GoSolutions, the benefits to the Company,
its stockholders or clients that are expected to be realized from the
acquisition of GoSolutions, and expectations regarding improvements in the
long-term value of the Company are forward-looking statements. These
statements, and other forward looking statements in this press release,
represent the Company's plans, intentions, expectations and belief and are
subject to certain risks and uncertainties that could cause actual results
to differ materially from those projected or expressed herein. These
include uncertainties in the market, competition, legal, regulatory
initiatives, success of marketing efforts, availability, terms and
deployment of capital, and other risks detailed in the Company's SEC
reports, of which many are beyond the control of the Company. Several
conditions must be satisfied or waived to complete the acquisition,
achieving the full benefit of the acquisition will depend in part on the
integration of technology, operations and personnel, GoSolutions and the
Company have limited operating histories which makes financial forecasting
and evaluation of the combined company's businesses difficult, trading in
the Company's common stock is limited, and marketability of the stock is
restricted by penny stock regulations and the fact that our common stock is
traded on the OTCBB. The Company assumes no obligation to update or alter
the information in this press release. Investors are cautioned not to put
undue reliance on any forward-looking statements. For these statements, we
claim the protection of the safe harbor for forward-looking statements
contained in Section 21E of the Exchange Act.
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