Newtek
Business Services to Acquire CrystalTech Web Hosting,
Inc. [April 28, 2004]
NEW
YORK, Apr 28, 2004 /PRNewswire-FirstCall via Comtex/
-- Newtek Business Services, Inc. (NKBS) (www.newtekbusinessservices.com),
a provider of business services and financial products
to the small to medium-sized business market, today
announced that it has signed an agreement to acquire
CrystalTech Web Hosting, Inc. Based in Phoenix, Arizona,
CrystalTech is one of the largest Microsoft Windows-only
hosting companies in the world, with 26,000 customers,
80 percent of which are small to medium-sized businesses,
and an impressive growth of approximately 1,100 new
hosting accounts per month. This acquisition greatly
enhances the ability of Newtek to cross-market its menu
of business and financial services to a large pre-existing
customer base. The agreement with CrystalTech is subject
to a number of conditions including financing.
Barry Sloane, Chairman and CEO of Newtek
Business Services, said, "The acquisition of CrystalTech
brings us a great management team and leadership from
CEO and President, Tim Uzzanti. The company has a well
deserved reputation for excellent customer service.
With the addition of CrystalTech, Newtek anticipates
to have in excess of 32,000 small to medium-sized business
customers using one or more of Newtek's services. Our
focus will be on growing the combined customer base
and actively using it to cross-sell our suite of business
services. One of the primary reasons for this acquisition
was the capability of CrystalTech management to compete
successfully in a difficult market environment and grow
the business during times when their competitors were
struggling. We are not interested in altering the formula
or the management that has led to the CrystalTech success,
although we will look at the opportunity to brand CrystalTech
as Newtek IT Services at some point in the future."
Mr. Sloane also indicated that "We are actively
exploring our financing alternatives and plan to complete
this transaction late in the second quarter or early
in the third quarter of this year."
Tim Uzzanti, President and CEO of CrystalTech,
added, "For quite some time now, the hosting industry
has looked for ways to market and provide services to
small to medium sized businesses. The problem is that
marketing a single product or service line to what is
a largely untapped market costs money, and those costs
are generally passed on to the end user in the form
of higher service fees or other add-ons. This acquisition
gives both CrystalTech and Newtek the ability to combine
the marketing of a variety of services to a large market
effectively and inexpensively without having to increase
costs or sacrifice the quality of those services."
"In addition," Mr. Uzzanti
continued, "while it's true CrystalTech is being
acquired, we're being given the freedom to act as an
independent division under the Newtek umbrella. CrystalTech
will remain CrystalTech, for all intents and purposes,
as we will be keeping our entire staff, our entire infrastructure
and our exceptional service levels. However, we're also
ready for the challenges and benefits that will come
as we transition into becoming the Information Technology
arm of Newtek Business Services. "
Newtek Business Services, Inc. is a
premier provider of business services and financial
products to the small to medium-sized business market.
Newtek's core brands include:
* Newtek Small Business Finance: small
business and U.S. government-
guaranteed lending services;
* Newtek Merchant Solutions: electronic merchant payment
processing
solutions;
* Newtek Financial Information Systems: outsourced bookkeeping
&
controller services;
* Newtek Tax Services: tax filing, preparation and advisory
services; and
* Newtek Insurance Agency: customized business insurance.
The statements in this release may contain forward-looking
statements relating to such matters as anticipated future
business strategies and financial performance, anticipated
future number of customers, the expected time of closing
of the CrystalTech acquisition, business prospects,
legislative developments and similar matters. The Private
Securities Litigation Reform Act of 1995 provides a
safe harbor for forward looking statements. In order
to comply with the terms of the safe harbor, the Company
notes that a variety of factors could cause the Company's
actual results to differ materially from the anticipated
results expressed in the Company's forward looking statements
such as intensified competition and/or operating problems
on its operating business projects and their impact
on revenues and profit margins or additional factors
as described in Newtek Business Services' 2003 annual
report on Form 10-K and subsequently filed registration
statements.
Contacts:
Newtek Business Services
Barry Sloane
Chairman of the Board & CEO
212-356-9500
bsloane@newtekbusinessservices.com
Dave Gentry
Aurelius Consulting Group, Inc.,
407-644-4256
dave@aurcg.com
SOURCE Newtek Business Services, Inc.
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