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Radiant Communications Announces Agreement to Sell Professional Services Business to Devlin eBusiness Architects |
March 8, 2006
Proceeds will be invested in growth of core connectivity and hosting operations
March 8, 2006 (Vancouver, BC) – Radiant Communications Corp. (“Corporation”) (TSX Venture Exchange: RCN), Canada’s leading supplier of Internet-based data communications and Internet services to the business market, today announced the signing of an agreement to sell the Radiant Professional Services business to Devlin eBusiness Architects, (Devlin) of Toronto. The sale is effective immediately.
The Professional Services business of Radiant is comprised of the Web Development and Marketing Services groups which employ 18 people. The groups provide valuable expertise in the implementation and execution of on-line marketing campaigns, web site and search engine optimization, and on-line strategies and web site design, development and implementation. Under the terms of the agreement, in return for a cash payment and future earn-out, Devlin will assume Radiant’s existing Professional Services customer base, computer equipment, and most of the employees associated with the operations. Radiant retains the existing working capital associated with the business,(approximately $300,000).
“The Board, management team and employees of Radiant are singularly focused and committed to building the Company into the first choice supplier of managed IP connectivity and hosting for small and medium Canadian businesses”, said Chris Worthy, Chairman and acting CEO of Radiant. “Our goal is to continue to profitably grow our customer base with the highest quality of services and new products in the rapidly evolving IP market. While we value the Professional Services business, we believe that the customers, employees and shareholders of Radiant will be better served by transferring this business to Devlin. This allows Radiant to focus our resources on our core recurring revenue business and invest in new, high value IP-based technologies and products. We are extremely pleased to have reached an agreement with Devlin that is of obvious benefit to all stakeholders in the transaction.”
“Radiant’s Professional Services business is synergistic with Devlin’s e-Business strategy, creative and technology practices, and also gives Devlin a solid presence in western Canada that we can grow,” said Catharine Devlin, President and CEO of Devlin eBusiness Architects. “Devlin’s clients will benefit from our expanded services in online marketing, and current Radiant clients will benefit from our expertise in helping companies grow their business on-line.”
ABOUT RADIANT COMMUNICATIONS Radiant Communications Corp. (www.radiant.net) provides a total, integrated solution for businesses requiring national IP data communications services including, broadband and managed network services, Internet access and web hosting.
The Company offers a complete range of coast-to-coast broadband services including DSL, T1, Fibre, and Cable. Radiant also provides specialized IP services for the Canadian retail industry, namely, RetailCONNECT IP network services and TurboSwitch IP payment gateway services. Radiant has offices in Toronto, Montreal, Calgary, Edmonton and Vancouver.
ABOUT DEVLIN eBUSINESS ARCHITECTS An award-winning leader in end-to-end Internet technology services, Devlin eBusiness Architects has created interactive tools and complex web properties for some of North America’s leading corporations. Augmented by a state-of-the-art in-house Usability Lab, Devlin provides a complete range of Internet development services including: application development, interface design, usability analysis, e-business strategy and DECISION ROOM™, Devlin's proprietary online collaboration tool. For more information please visit www.devlin.ca or www.decisionroom.com.
For More Information:
RADIANT COMMUNICATIONS Investors & Media: Chuck Leighton, CFO, 604-692-4531, cleighton@radiant.net
DEVLIN eBUSINESS ARCHITECTS Patricia Dunn, Patricia Dunn Communications 604-734-8749, patricia@patriciadunn.com.
This press release may contain forward-looking statements, including statements regarding the business and anticipated financial performance of Radiant, which involve risks and uncertainties. These risks and uncertainties may cause Radiant's actual results to differ materially from those contemplated by the forward-looking statements. Factors that might cause or contribute to such differences include, among others, competitive pressures, the growth rate of the Internet and telecommunications concerns, constantly changing technology and market acceptance of the company's products and services. Investors are also directed to consider the other risks and uncertainties discussed in Radiant's required financial statements and filings. All other companies and products listed herein may be trademarks or registered trademarks of their respective holders.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
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