Island Pacific Signs Letter of Intent to Acquire Retail Technologies International
• Companies will unite to become a global powerhouse in delivering technology solutions to mid-tier retailers
• Acquisition to be immediately accretive
Irvine, Calif. – January 9, 2004 – Island Pacific (AMEX:IPI) announced today that it has signed a letter of intent to acquire privately held Retail Technologies International, Inc. (RTI). RTI is a leading provider of retail management store solutions, via an international network of resellers, to small through mid-tier retailers. Island Pacific (IP) is the leading high value, stable and low cost provider of enterprise solutions to similar markets. The combination of Island Pacific, RTI and recently announced acquisition, Page Digital, will create a fully integrated global provider of retail technology solutions to this market sector.
The acquisition price will be up to $11million, which shall be paid for through a combination of cash and the issuance of common stock. The acquisition is expected to close during February and to be immediately accretive to Island Pacific. RTI had gross revenues for its most recent fiscal year ended December 31, 2003 in excess of $9 million and was profitable.
RTI currently has over 9,000 customer sites representing 25,000 stores in 63 countries using its flagship product Retail Pro®. The product is distributed through 64 resellers. IP has 200 clients with in excess of 30,000 stores in 23 countries.
“The synergies created by this acquisition are powerful,” said Harvey Braun, IP’s chief executive officer. “The combined companies will now be able to offer a fully integrated solution to mid-tier retailers that will be unique in the marketplace. As a result of this transaction, smaller retailers for the first time will now be able to acquire, in a cost-effective manner, a solution that provides both front and back-end support. Island Pacific will also increase its scale significantly. We now have a global presence and strength like no other retail solution provider. RTI will assume responsibility to market IP Express (formerly known as Einstein in a box) through its channel, while IP will continue to market its enterprise applications to its traditional market, mid-tier retailers. It dramatically enhances the potential impact of IP Express and represents a significant milestone in our mission to become the industry’s most valued resource for retailers.“
“The joining of our two companies creates incredible opportunities for our customers and business partners,” said Mike Tomczak, chief executive officer of RTI. ”We instantly expand service and product offerings, extend distribution channels and strengthen an already impressive installed base.”
“Because IP and RTI share the same philosophies and strategies on product development and customer service, we anticipate the relationship will only accelerate the momentum created by both organizations,” said Steven Beck, president and chief operating officer of IP. “With its robust feature set, global customer base and technical knowledge to translate applications into foreign languages, the strength of the RTI offering will be an exciting addition to the IP family of products. Its distribution platform combined with its installed base of customers provides a major market opportunity for IP’s solution set, including loss prevention, point of sale as well as other partner products marketed by IP.“
Both companies will be exhibiting next week at the National Retail Federation (NRF) 93rd Annual Convention and Expo being held at the Jacob Javits Convention Center in New York City. Island Pacific will be in Booth #315 and Retail Technologies International will be in Booth #1971.
About Retail Technologies International, Inc.
Founded in 1987, Retail Technologies International, Inc. (RTI) is the global leader in retail management systems. RTI’s flagship product, Retail Pro®, is used by more than 25,000 stores in 63 countries. For over 18 years RTI has been a thought leader in POS and inventory management, providing flexible, best of breed solutions for retailers. A partial list of current customers includes Louis Vuitton, Gucci, Fendi, Valentino, Swarovski, Play It Again Sports, The Body Shop, PUMA, Diesel, Betsy Johnson, Black and Decker, Hugo Boss, The Staples Center, Yosemite National Park, Yellowstone National Park, and Squaw Valley, USA. RTI is privately held, with headquarters in Folsom, CA. For more information, please visit www.retailpro.com.
About Island Pacific
For more than 25 years, Island Pacific has developed a reputation for delivering high-quality, high-reliability software to the retail industry. Recently, the company has transformed itself into the low-cost, high-value provider of retail enterprise solutions by developing breakthrough technologies, and by partnering with leading consulting organizations to provide next-generation services. In addition, Island Pacific leverages its years of experience with emerging and established retailers to craft creative solutions tailored for each customer’s needs. As a result, Island Pacific is the definitive resource for scalable, flexible and affordable solutions for retailers around the world.
With nearly 200 customers, Island Pacific and its solutions are represented in more than 30,000 stores worldwide, and manage more than 1.5 billion transactions annually. Founded in 1978, the company is headquartered in Irvine, California, and has offices in the United States and the United Kingdom. Its worldwide customer base includes major retailers such as American Eagle Outfitters, Charming Shoppes, Timberland, Chick’s Sporting Goods, The Limited, Nike, Signet, Vans, Inc, and Toys "R" Us. For more information, please visit www.islandpacific.com.
Certain statements contained in this news release regarding matters that are not historical facts are forward-looking statements. These statements relate to future events or the Company`s future performance. These statements are only predictions. Because such forward-looking statements include risks and uncertainties, actual results may differ materially from those expressed in or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the risk factors listed in the Company`s (SVI) Form 10-KA for the fiscal year ended March 31, 2003 and other risk factors identified from time to time in the Company`s filings with the Securities and Exchange Commission. IPI undertakes no obligation to release publicly any revisions to the forward-looking statements to reflect events or circumstances after the date of this news release or to reflect the occurrence of unanticipated events.
Media Relations Contacts:
Ron Koren
Island Pacific
+1.949.440.3193
Email: rkoren@islandpacific.com
Kim Schmitz
Retail Technologies International
+1.916.605.7200
Email: kschmitz@retailpro.com
Investor Relations Contact:
Tricia Skoda
Island Pacific, Inc.
+1.858.550-3342
Email: tskoda@islandpacific.com
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