Published: May 02, 2006
VillageEDOCS Completes Acquisition of GoSolutions
Combined Company Refines How Companies Exchange Critical Business Information
VillageEDOCS (OTC BB: VEDO) today announced the
completion of its acquisition of GoSolutions, Inc. The closing of the
transaction took place on April 28, 2006, and the acquisition became
effective May 1, 2006. The acquisition will strengthen VillageEDOCS'
standing in the marketplace, while opening several new lines of business
and creating significant new re-occurring revenue opportunities. The deal
also represents a major opportunity for GoSolutions to advance its
leadership in business communications and provide new customer-centric
industry solutions.
"Delivery of critical business information between enterprises is at the
heart of commerce and community," said Mason Conner, Chief Executive
Officer of VillageEDOCS. "By combining GoSolutions' capabilities and ours,
we have enhanced our ability to drive customer value for new and existing
customers."
"Our vision for GoSolutions has always been to build the world's best
communications business and revolutionize the ease with which businesses
can communicate," said Thor Bendickson, GoSolutions' President. "We can't
think of a better opportunity to fulfill this vision than joining the
VillageEDOCS family of companies."
We are pleased to report that GoSolutions' 2005 (unaudited) income from
operations was $714,996 on net revenue of $6,996,534. VillageEDOCS' 2005
income from operations was $125,186 on net revenue of $8,768,446. Had the
acquisition been in effect throughout all of 2005, the unaudited net
revenue of VillageEDOCS and GoSolutions would have been $15,764,980.
Accordingly, we expect the acquisition of GoSolutions to have a significant
and positive effect on our results for the second, third and fourth
quarters of 2006. For more information, please review the 8-K to be filed
with the U.S. Securities and Exchange Commission regarding this
transaction.
Management of VillageEDOCS includes executives from both organizations.
Mason Conner continues as Chief Executive Officer and Jerry Kendall as
President of VillageEDOCS. Thor Bendickson will serve as President of
GoSolutions and Chief Technology 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, without limitation, those
relating to our belief regarding the benefits to the Company, its
stockholders or clients that we expect to be realized from the acquisition
of GoSolutions, our belief about our standing in the marketplace, our
expectations about new revenue opportunities, and our 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. 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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