TEKsystems, headquartered in Hanover, Maryland, is a $2.1 billion global provider of technology execution services. The Company's core ability to deploy high-caliber IT and communications expertise across a full portfolio of service offerings including Staffing, Team, Workforce Management, and Component Services is unequaled. TEKsystems has over 90 offices throughout the United States, Canada, and Europe, and more than 20,000 IT and communications professionals supporting over 2,800 clients.
Dennis Conroy, president and chief executive officer of Computer Horizons Corp., said, "I am pleased to announce the sale of CHC's Commercial division to TEKsystems. We believe the combination of the businesses will yield great synergies and we are confident that our shareholders, customers and employees alike, will benefit from this transaction."
Keith Bozeman, president of TEKsystems, commented, "We are very excited about the opportunity to add superior value for our customers and Technical Professionals through this acquisition and to welcome aboard many talented individuals from CHC to our high-performance team."
Computer Horizons expects to schedule a Special Meeting of its Shareholders during the first quarter of 2007 for the purpose of obtaining shareholder approval for this transaction, as well as to obtain the approval for the sale of CHC's Chimes unit to Axium International, previously announced on October 18, 2006. The Special Meeting of Shareholders will be announced in the Company's proxy filing with the Securities and Exchange Commission.
The corporate entity, Computer Horizons Corp., will ultimately be liquidated after among other things, a full transition to the new Chimes and Commercial owners and a wind down of corporate assets and people not included in these two transactions, which is expected to include significant costs. The net gain on the various transactions will result in the payment of a relatively minimal amount of taxes due to the significant tax loss carryforwards. The Company will be reviewing alternatives on liquidation and further detail will be disclosed in the Company's preliminary proxy statement scheduled to be filed this month with the Securities and Exchange Commission. Investors and security holders are advised to read the proxy statement when it becomes available, because it will contain important information. Jefferies Broadview served as financial advisor to Computer Horizons.
The Company has scheduled its Annual Meeting for December 20, 2006. The corresponding record date is November 15, 2006.
About Allegis Group
Founded in 1983, Allegis Group is the world's largest privately held staffing company, the second largest in the United States and the sixth largest in the world based on revenue. (Staffing Industry Report, 2005) Allegis Group has 8,000 corporate employees and more than 2,600 dedicated recruiters across all operating companies. Respected as a leader in the staffing industry, Allegis Group has approximately 80,000 active contract employees and more than 250 offices in the U.S., Canada, and Europe.
About TEKsystems
About Computer Horizons
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements can be identified by words such as "believe," "expect," "anticipate," "plan," "potential," "continue" or similar expressions. Forward-looking statements also include the assumptions underlying or relating to any of the foregoing statements. Such forward-looking statements are based upon current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements including, but not limited to, risks associated with unforeseen technical difficulties, the ability to meet customer requirements, market acceptance of service offerings, changes in technology and standards, the ability to complete cost reduction initiatives, dependencies on certain technologies, delays, market acceptance and competition, as well as other risks described from time to time in the Company's filings with the Securities and Exchange Commission, press releases and other communications. All forward-looking statements included in this press release are based on information available to the Company on the date hereof. The Company undertakes no obligation (and expressly disclaims any such obligation) to update forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to update reasons why actual results would differ from those anticipated in such forward-looking statements.
Computer Horizons Corp.
