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September 29, 1998

4FRONT BUYS ITALIAN SERVICES COMPANY MEMOREX TELEX

By CBR Staff Writer

Italian computer services and networking company Memorex Telex SpA has been acquired by the UK’s Nasdaq-listed 4Front Technologies Inc group of companies for $3.45m. 4Front said it would invest an additional $1.6m directly into Memorex in order to develop the business. Milan-based Memorex is one of the top ten computer maintenance companies in Italy, and is IBM Corp’s main support and networking partner in Italy. Its other customers include Cisco Systems Inc, Compaq Computer Corp, Sun Microsystems Inc, Novell Inc and Microsoft Corp. 4Front says it now ranks in the top ten of such companies in four European companies: the UK, France, Belgium and now Italy. 4Front started its mainland European expansion last year by buying the French and Belgian subsidiaries of Eurosystems Ltd for $1.12m in shares and cash (CI No 3,279). The Memorex deal, says 4Front will give it an additional $20m in revenues in the first 12 months following the acquisition, and will afterwards be accretive to earnings. It marks a further stage in the slow dismemberment of the once proud Memorex Corp empire, which in its latter day Memorex Telex NV incarnation filed for Chapter 11 bankruptcy protection last year as a prelude to its break-up.

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