Business Editors
FAIRFIELD, N.J. & TORONTO--(BUSINESS WIRE)--May 14, 2001
JAWZ Inc. (NASDAQ:JAWZ), a leading provider of secure information management solutions announced today that it has entered into an agreement with respect to the sale of the JAWZ e-Business group based out of Calgary, Alberta to Rubicon Investment Group and JAWZ e-Business management.
Rubicon has renamed the e-Business group "Centient Solutions Inc."
"In order for JAWZ to meet its business objectives in a competitive and growing security marketplace, we need to focus available capital and resources on our core competency of IT security," said Robert Kubbernus, Chairman and CEO of JAWZ Inc. "The friendly sale of our e-Business group is clearly a win-win situation for both JAWZ and Centient. Both organizations will be able to commit resources to developing and servicing a market by focussing on their respective core competencies, while maintaining a partnership to service the diverse needs of both blue-chip client lists. JAWZ' divesture of the e-Business group allows us to further reduce our overhead costs while retaining valuable client relationships that we have developed since inception."
"The estimated annual savings per year through the divesture of the e-Business group will be significant," added Kubbernus "Although some impact to our revenue will occur, the direct and related expenses will effect our net results positively. This divesture serves a dual purpose; first, it helps us accelerate our goal of profitability within 2001, and second, research published in early 2001 indicates that clients in the e-Business space have shifted away from the 'end-to-end' model to a more niche focused one, while clients seeking IT security services still prefer an end to end security provider. The divesture of the e-Business team allows us to quickly react to these changing market needs while still offering a breadth of services through separate providers."
"We're excited about the opportunities at Rubicon's Centient Solutions," said Raghu Kilambi, co-founder and General Partner at Rubicon. "We believe the former JAWZ e-Business group is a sound business opportunity with a blue chip client base in Canada and the US. We envision that JAWZ and Centient will continue to work closely together, each focussing on their core competencies."
"Centient Solutions is delivering leading-edge e-Business solutions and has a world class team. We look forward to working together with this exceptional group in servicing not only current e-business clients, but also taking advantage of the wealth of opportunities that are available and growing the business," said Greg Nuttall, co-founder and General Partner at Rubicon Investment Group.
Effective May 10, 2001, Rubicon, together with senior managers, Lawrence Gordey, President of Centient Solutions, and Soon Chong, Vice President, Professional Services, will purchase the JAWZ e-business group for $500,000 (Canadian) and invest substantial working capital to strengthen operations and move forward with new ventures. The new Centient Solutions will maintain its nearly 35 employees and contractors on staff.
In connection with the acquisition, Mr. Kilambi has resigned from his position on the JAWZ Board of Directors. JAWZ would like to thank Mr. Kilambi for his contribution over the past several months.
About Centient Solutions
Centient Solutions provides custom secure e-Business solutions in the business-to-business, business-to-employee, and business-to-consumer environments using the latest proven web-enabled technologies and business practices.
About Rubicon Investment Group
Rubicon Investment Group is a recently formed merchant-banking firm focused on private equity buy-outs and active public market investments in businesses with strong franchises, above-average growth rates and excellent management. Rubicon Investment Group is led by Raghu Kilambi and Greg Nuttall.
Raghu Kilambi, CA, has extensive experience investing in, financing and operating successful growing technology businesses both as a merchant banker and as co-founder and former CFO of FutureLink Corp.
Greg Nuttall, LL.B., LL.M.i, has an outstanding track record as a business-builder, strategic and operational change management advisor, and corporate finance and M&A lawyer.
About JAWZ Inc.: "JAWZ by Name - Protective by Nature"
JAWZ Inc. is a leading secure information management solutions provider, specializing in the field of full service information security. The company's products and services line includes security software products, consulting services and secure Internet and remote data storage services. These products are offered to key client groups including healthcare providers, governments, law enforcement, financial services, e-commerce businesses, and telecom suppliers specializing as Application Service Providers (ASP) and Internet Service Providers (ISP). It has approximately 50 established strategic partnerships and 400 corporate clients including CU-Connect, Verizon Communications, Group Telecom, TELUS, Oracle, GE, among others. International headquarters for JAWZ is located in Toronto, Canada with its US head office in Fairfield, New Jersey. For more information please visit our website www.JAWZinc.com or call 1-888-301-5297.
Any statements contained herein that are not historical facts are forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and involve risks and uncertainties. Potential factors could cause actual results to differ materially from those expressed or implied by such statements. Information on the potential factors that could affect the Company's actual results of operations are included in its filings with the Securities and Exchange Commission. These risks may be further discussed in periodic reports and registration statements to be filed by the Company from time to time with the Securities and Exchange Commission in the future, including but not limited to the Company's S-3 Registration Statement filed January 27, 2001.
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