Crystal Systems Solutions to Combine Forces With Liraz Systems Ltd.; Crystal to Issue Shares to Liraz Shareholders and Receive Liraz Shares.
Business Editors & Technology Writers
HERZLIA, Israel--(BUSINESS WIRE)--Oct. 13, 2002
Crystal Systems Solutions (NASDAQ: CRYS):
- Consolidation Creates a Leading Software Modernization
Solutions Entity
- Strengthens Crystal's and Liraz's Presence in Europe and The
U.S.
Crystal Systems Solutions Ltd. (NASDAQ: CRYS), a global provider of leading software products and support services for the modernization of existing information systems, today announced it has received audit committee and board approval to issue 3,478,624 shares to certain shareholders of Liraz Systems Ltd. (TASE: LIRAZ) in exchange for 5,809,302 million shares of Liraz. As a result, these Liraz shareholders will own approximately 26% of the outstanding shares of Crystal, and Crystal will own approximately 86% of Liraz.
Crystal and Liraz intend to work together in the areas of marketing, sales and technology development. The closing of the transaction is subject to the approval of the shareholders of Crystal. A special meeting of Crystal shareholders is scheduled for November 14, 2002.
Commenting on the merits of the consolidation, Mr. Gad Goldstein, Chairman of Crystal said, "We anticipate that this transaction will generate both quantitative and qualitative benefits for both companies due to the significant synergies in marketing, sales and technology. By capitalizing on the strengths of each company and combining our efforts, we can increase sales, improve the technological offerings and generate a sound infrastructure of a leading player in the software modernization market."
"We anticipate that the consolidation will facilitate rapid development of leading-edge products and tools that enable reliable modernization of legacy applications, and development of new business applications. The AppBuilder software together with the CRYSWARE tool kit, offers a comprehensive technological solution that meets customer needs to bridge legacy systems to current enterprises needs such as multichannel requirements and Web Services," said Arik Kilman, Chairman of Liraz.
Formula Systems (1985) Ltd. (NASDAQ: FORTY) is the largest shareholder of Crystal. Prior to consummation of the transaction, Formula is also the largest shareholder of Liraz. Formula currently owns approximately 52% of Crystal's shares and prior to consummation of the transaction, 58% of Liraz shares. Following this transaction, Formula will own approximately 56% of the outstanding shares of Crystal.
