Precept Business Services Acquires Nicon, Inc.
21 January 1999
Precept Business Services Acquires Nicon, Inc.; Revenue 'Run Rate' of Corporate Transportation Division Now Exceeds $36 Million
DALLAS--Jan. 21, 1999--Precept Business Services, Inc. , the nation's largest independent distributor of printed business products and document management services and one of the largest providers of corporate transportation services in the U.S., today announced that it has acquired Nicon, Inc. for an undisclosed amount of stock and cash.Nicon, Inc., headquartered in Princeton, New Jersey, is the parent company of Crown Limousine Service and Princeton Graytop Limousine Service. Through its subsidiaries, Nicon has provided corporate ground transportation services in the "Princeton corridor" for the past 26 years.
"With the acquisition of Crown and Princeton Graytop, we now operate a fleet of more than 200 sedans, limousines, vans and mini-buses in the Tri-State area," commented Ron Sorci, President of Precept Transportation Services, LLC. "Precept is positioned as a powerful competitive force in this region of the country, which is responsible for over 40% of America's corporate ground transportation market."
"The acquisition of Nicon and its limousine subsidiaries is consistent with our strategy of consolidation within the $12 billion corporate transportation industry and will complement Precept's other ground transportation operations in Texas, Ohio, and Michigan," noted David Neely, Chairman and Chief Executive Officer of Precept Business Services, Inc. "With this acquisition, we expect to generate over $20 million in annual revenues from our corporate transportation activities in the Northeastern U.S., while the combined revenues of our corporate transportation businesses throughout the country now exceeds $36 million per year. With over 9,000 companies operating in the highly-fragmented chauffeured limousine industry, we view this field as being ripe for consolidation and expect to aggressively pursue acquisitions in major metropolitan markets throughout the United States."
Precept Business Services, Inc. is the nation's largest nationwide independent distributor of printed business products and document management services. The Company also provides corporate transportation services in Texas, New York, New Jersey, Ohio and Michigan. Recent acquisitions have diversified the Company's revenue base and positioned Precept as a consolidator within the $20 billion business products and document management services industry, and the $12 billion corporate transportation industry. The Company is headquartered in Dallas, Texas and its common stock is traded on NASDAQ under the symbol "PBSI".
This press release includes statements which may constitute "forward-looking" statements, usually containing the words "believe", "estimate", "project", "expect" or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company's products in the marketplace, competitive factors, dependence upon third-party vendors, and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.