NetSol Technologies, Inc. (NASDAQ: NTWK), adeveloper of proprietary software applications and provider of informationtechnology (IT) services, today announced it has completed its acquisitionof Burlingame, California-based McCue Systems Inc., a leading provider oflease and loan portfolio management software for banks, leasing companiesand manufacturers.
"We are pleased to announce that we completed our acquisition of McCueSystems on June 30, our fiscal 2006 year end," said NetSol CEO NaeemGhauri. "The ability to identify, engage and acquire a market leader suchas McCue is a testament to the expertise of our team and their dedicationand ability to scale the business. We believe this is a major step towardestablishing a U.S. presence, as well as market penetration into a regionthat represents a highly profitable sector of the global asset leasingindustry."
"This acquisition further solidifies NetSol Technologies' standing as aworld class provider of software solutions for the equipment and vehicleleasing industry," said McCue Systems President, CEO and founder JohnMcCue. "Our client base of global brands, from Cisco to Hyundai toVolkswagen, will be well served by the technology leadership, businessacumen, and professional services expertise now available through thecombined organization. We are pleased to be counted among the NetSolfamily."
Under the terms of the acquisition agreement, NetSol acquired McCue Systemsfor approximately $8.5 million. Payment consisted of 50 percent cash withthe balance paid through the issuance of NetSol's common stock carryingRule 144 restrictions. Additionally, there is a 50 percent deferredcomponent based on an earn-out formula over McCue's 2006 and 2007 fiscalyears, ending December 31, 2006 and December 31, 2007, respectively. Thecompany anticipates paying the balance of the consideration in twotraunches scheduled over the next 24 months.
"We are extremely pleased to have completed the McCue acquisition beforethe close of our fiscal year end," said NetSol Chairman Najeeb U. Ghauri.The acquisition of an established U.S.-based software company is asignificant step forward for NetSol, as we now have a strong marketing andsolution delivery platform in the largest leasing and finance market inNorth America. We are also delighted to announce that John McCue willcontinue in his role as CEO and President of McCue Systems. We look forwardto working closely with John as we focus on growing the business in theU.S. and abroad."
NetSol has reported seven consecutive quarters of revenue growth andprofitability, with net revenue of $14 million for the first nine months offiscal 2006, a 76 percent increase over the comparable period last year.McCue Systems reported revenue of approximately $5.6 million with netprofit of approximately $655,000 for fiscal 2005, ended December 31.
About McCue Systems
With over 30 years of experience in developing business solutions for theequipment and vehicle leasing industry, McCue Systems Inc. is the leadingprovider of lease/loan portfolio management software for banks, leasingcompanies and manufacturers. Its flagship product, LeasePak, simplifieslease/loan administration and asset management by accurately trackingleases, loans and equipment from origination through end-of-term anddisposition.
McCue Systems leads the leasing technology industry in the development ofWeb-enabled and Web-based tools to deliver superior customer service,reduce operating costs, streamline the lease management lifecycle, andsupport collaboration with origination channel and asset partners.
By harnessing the most advanced technologies, McCue Systems can offer theright operating platform for almost any enterprise. LeasePak can beconfigured to run on HP-UX, SUN/Solaris or Linux, as well as for Oracle andSybase users. And for unmatched scalability, McCue Systems offers theLeasePak Bronze, Silver and Gold Editions for systems and portfolios ofvirtually all sizes and complexities. McCue Systems' solutions set theindustry standard for reliability, providing the equipment and vehicleleasing infrastructure at leading Fortune 500 banks and manufacturers, aswell as for the industry's leading independent lessors, including Cisco,Hyundai, JP Morgan/Chase, ORIX, and Volkswagen Credit.
The leasing experts at McCue Systems work closely with lessors to put thecompany's leasing expertise to work to streamline lease operations andenhance customer retention at every stage of the lease lifecycle. For moreinformation, visit www.mccue.com.
About NetSol Technologies, Inc.
NetSol Technologies is an end-to-end solution provider for the lease andfinance industry. Headquartered in Calabasas, CA, NetSol Technologies, Inc.operates on a global basis with locations in the U.S., Europe, East Asiaand Asia Pacific. NetSol helps its clients identify, evaluate and implementtechnology solutions to meet their most critical business challenges andmaximize their bottom line. By utilizing its worldwide resources, NetSoldelivers high-quality, cost-effective IT services ranging from consultingand application development to systems integration and outsourcing.NetSol's commitment to quality is demonstrated by its achievement of bothISO 9001 and SEI (Software Engineering Institute) CMM (Capability MaturityModel) Level 4 assessment. For more information, visit NetSol Technologies'web site at www.netsoltek.com.
Securities Exchange Act of 1934
This release is comprised of inter-related information that must beinterpreted in the context of all the information provided; accordingly,care should be exercised not to consider portions of this release out ofcontext. This release is provided in compliance with Commission RegulationFD and contains certain "forward-looking statements" within the meaning ofSection 27A of the Securities Act of 1933 and Section 21B of the SecuritiesExchange Act of 1934. Any statements that express or involve discussionswith respect to predictions, expectations, beliefs, plans, projections,objectives, goals, assumptions or future events or performance, are notstatements of historical fact and may be "forward-looking statements."Forward-looking statements are based on expectations, estimates andprojections at the time the statements are made that involve a number ofrisks and uncertainties which could cause actual results or events todiffer materially from those presently anticipated. Forward-lookingstatements in this action may be identified through the use of words suchas "expects," "will," "anticipates," "estimates," "believes," or statementsindicating certain actions "may," "could," or "might," occur. Suchstatements reflect the current views of NetSol Technologies with respect tofuture events and are subject to certain assumptions, including thosedescribed in this release. Should one or more of the underlying assumptionsprove incorrect, actual results may vary materially from those describedherein as anticipated, believed or expected. NetSol Technologies does notintend to update these forward-looking statements prior to announcement ofquarterly or annual results.
Investor Relations:Marty Tullio orMark D. TullioMcCloud Communications, LLC949.553.9748marty@McCloudCommunications.commark@McCloudCommunications.com
NetSol Technologies:Najeeb U. GhauriChairman orTina GilgerCFO818.222.9195najeeb@netsoltek.comtina@netsoltek.com
McCue Systems:Andrew LeaVP, Corporate CommunicationsMcCue Systems Inc.650.348.0650 ext. 1171andrewl@mccue.com
SOURCE: NetSol Technologies, Inc.