Troubled Fairfax, Virginia-based systems integrator BTG Inc has decided not to proceed with its proposed acquisition of Micros-to-Mainframes Inc, for financial considerations. The plan, announced last September, had BTG paying MTM $25m in cash and stock for New York-based commercial network integration company MTM, which has 120 employees in three states, and recorded revenues of $58m last year. Now MTM is demanding $500,000 provided in the merger agreement as a termination penalty. It says it spent substantial funds and energy on the merger plans, but president Steven Rothman claims his company is still well positioned to compete in the advanced technology service and reselling field. BTG posted a net loss of $2.9m on revenues of $496.2m for the first nine months of fiscal 1998. Late last week it agreed to sell its Federal Government reseller division to Chantilly, Virginia-based Government Technology Services Inc for $8m in cash and 15,775 shares, valuing it at around $23m, after a $28m rival bid from five BTG executives failed. The company says it will now concentrate on its services and support business.
