With this transaction, Fortsum’s revenues will increase by some 40% and the Corporation will gain Microsoft Dynamics and Sage ACCPAC as select business partners.
Québec, April 7, 2006 - Fortsum Business Solutions Inc. (Fortsum Business Solutions) (TSX Venture Exchange: FRT) announces today that it has closed the transaction to acquire Groupe Conseil LVMB Inc. (Groupe Conseil LVMB), an integrator of accounting management software solutions, for approximately $3M. As of September 30, 2005, Groupe Conseil LVMB generated annual revenues near $6M and earnings before interest, tax, depreciation and amortization of about $525,000.
Fortsum Business Solutions Chief Executive Officer, François Taschereau, said: "The acquisition of Groupe Conseil LVMB proves our determination to become a front-line integrator of financial information for Québec-based businesses of all sizes. It also places Fortsum Business Solutions in a position to dominate Québec’s business systems market by exploiting a unique business model, which is the first of its kind in Canada. Thanks to the widely recognized know-how of Groupe Conseil LVMB in the area of developing and integrating top-of-the-line solutions and the business relationships it has developed over the last fifteen years, Fortsum Business Solutions now counts amongst its business partners such prestigious companies as Microsoft and Sage, thus making Fortsum Business Solutions a dominant player in the Québec financial information integration sector. What’s more, the unquestionable competence and popularity of Christian Van Moorhem and François Paré in the IT sector adds exceptional value to this transaction. It is with great pride that we welcome the some fifty LVMB employees to our company. Groupe Conseil LVMB will continue to offer its current services, notably as Gold certified partner for Microsoft Dynamics and as a Sage ACCPAC partner."
Groupe Conseil LVMB Manager, Christian Van Moorhem, added: "François Paré and I are very happy to join such a high-calibre company as Fortsum Business Solutions and we are equally pleased to continue managing our division. The integration of LVMB’s activities with those of Fortsum Business Solutions was very favourably received by all our business partners, who see the merger as an opportunity for profitable future opportunities. We are truly enthusiastic about the potential for growth before us and the support and expertise now available to pursue our mission: To offer professional services with top-of-the-line, proven solutions for meeting our clients' goals."
Acquisition Conditions
As announced on February 27th last, the cost of this transaction represents about 15% of Fortsum Business Solutions’ total assets and will be broken down in the following manner: $1.8M in cash upon closing and the balance in cash or Fortsum Business Solutions shares over three years at the issuer’s discretion.
About Groupe Conseil LVMB
Founded in 1991, Groupe Conseil LVMB specializes in the integration of accounting management solution integration for businesses of all types and sizes. With its head office in Laval, the company operates a satellite office in Québec. The LVMB team counts some 50 employees and provides services to over 1000 clients. For more information: www.lvmb.com
About Fortsum Business Solutions
The result of the merger of Fortune 1000 Group Inc. and a venture capital company, Fortsum Business Solutions Inc. is mainly involved in the development, marketing and support of accounting, commercial and banking data management software. For more information: www.fortsum.com
Forward-looking information
This press release may contain forward-looking information. Statements based on current management expectations involve inherent risks and uncertainties, both known and unknown. Actual results may vary from forecasts. The reader should not place undue faith in forward-looking information.
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For Information:
FORTSUM BUSNIESS SOLUTIONS INC.
François Taschereau
Chief Executive Officer
ftaschereau@fortsum.com
Dany Beaudet
Shareholder Communications Coordinator
Tel.: (418) 877-0088 Ext. 2272
Toll-free: 1 888 268-0088
Fax: (418) 877-9994
dbeaudet@fortune1000.ca
Frédéric Tremblay
HKDP Communications and Public Affairs
Tel.: (514) 395-0375 ext. 234
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