West Palm Beach, Florida, August 9, 2006 – The ComVest Group announced today that it has entered into definitive agreement under which they will acquire Zomax in an all cash transaction valued at $68 million, or approximately $2.09 per share.
“ComVest has experience as an investor in the supply-chain management industry and we are pleased that they have chosen to further their commitment in the industry through Zomax,” said Anthony Angelini, president and CEO of Zomax. “ComVest’s knowledge of the supply-chain and logistics industry will be an asset to Zomax as a private company. Through this transaction we are confident that Zomax will be able to continue to provide its customers with the superior products and services they have come to expect from the Company and over the long-term, reach its true market potential.”
Under the terms of the agreement, Zomax stockholders will receive $2.09 in cash for each share of Zomax common stock they hold. This price per share represents an approximate premium of 46% to Zomax’ closing share price on August 8, 2006. The independent members of the Zomax Board of Directors have unanimously approved the definitive merger agreement and will recommend that Zomax stockholders vote in favor of the transaction. The transaction requires the approval of Zomax shareholders, customary government approvals, and satisfaction of certain closing conditions. Based upon the time needed to satisfy these conditions, the transaction is expected to close in the next 60 to 90 days.
“Our Board believes this transaction is in the best interest of the Company and our shareholders,” added Howard Liszt, chairman of Zomax. “ComVest has experience in our market and we feel that this is the best course of action for the Company to take at this time. ComVest has presented an all cash offer for Zomax shares, which we believe is a compelling premium to our current market price. We recommend that the shareholders adopt this agreement.”
“This transaction represents our continuing commitment to the supply chain solutions space which began with our investment in Inoveris,” said Robert Priddy, a Managing Partner of ComVest. “Zomax’s impressive customer base and understanding of the value of customer service coupled with its expertise in the supply chain solutions market should allow us to expand the market share of both companies. We look forward to working with Zomax to reach our mutual goals.”
Inoveris enables companies to streamline the process of delivering products and information to market by providing technology driven supply chain solutions that reduce costs and increase efficiencies. Acting as an extension of a company’s infrastructure, Inoveris provides a single-source solution to execute all supply chain needs. From sourcing, to kitting and assembly, to physical and electronic distribution, to complex inventory management, Inoveris delivers competitive advantage at a time when supply chain efficiency is critical to a company’s success. For additional information, please visit: www.inoveris.com
Zomax helps companies more efficiently bring their products and content to market worldwide. Our comprehensive program management approach helps companies develop, manage and improve their rapidly changing product and program supply chains. Zomax’s solutions leverage a modular suite of supply chain services that include project management, data management, customer contact and e-commerce services, sourcing management, CD/DVD production, assembly and kitting services, JIT physical and electronic fulfillment and returns management. Founded in 1993, Zomax currently operates 8 facilities across the United States, Canada, Mexico and Ireland. For more information on Zomax, visit www.zomax.com or call (866) 553-9393.
The ComVest Group is a Leading Private Equity Firm focused on investing in middle-market companies. Since 1988 ComVest has invested more than $2 billion of equity capital in over 200 public and private companies worldwide. Through our extensive financial resources and broad network of industry experts, we are able to offer our companies total financial sponsorship, critical strategic support, and business development assistance. Our focus is centered on Building Industry Leading Companies and Creating Long Term Value for Equity Holders. For more information on ComVest, visit www.comvest.com.