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The following press release was issued
by Systemax.
PORT WASHINGTON, NY, Oct. 19,
1999 -- Systemax Inc. (NYSE: SYX) has acquired the assets,
customer lists, name, and trademarks of the Proteva brand personal
computer business. Proteva PCs are best known for their impressive
distribution through large national and regional mass merchandisers
and consumer electronics chains. Customers include Sears (NYSE:
S), Value America (NMS: VUSA), and The Wiz unit of Cablevision
Systems (AMEX: CVC).
Richard Leeds, Systemax Chairman and CEO, said the acquisition
is part of Systemax's highly successful strategy of creating
a national PC brand on an economical basis by consolidating
the largely unbranded "white box" market, which
accounts for more than 50% of all PCs sold. Mr. Leeds said
Proteva would become part of Systemax's existing domestic
PC sales, assembly and service operation.
Proteva filed a bankruptcy petition under Chapter XI on August
30, 1999. Mr. Leeds said Systemax acquired the assets for
an undisclosed amount of cash and the assumption of certain
obligations. Proteva, which was established in 1988 and was
privately held, is based in Posen, Illinois. In addition to
Proteva's skilled work force, well known brand and current
sales and distribution channels, Mr. Leeds stated that the
purchase provides a number of additional strategic advantages:
Proteva's assembly operation
has the capacity to produce more than 200,000 build to order
PCs a year, significantly adding to Systemax's capacity to
meet increasing demands.
Proteva has an experienced sales force serving retailers and
value added resellers.
Proteva has been very successful at placing in-store kiosks
where consumers can electronically purchase build to order
PCs, eliminating the need for costly in-store inventory.
"Combined
with Systemax's domestic PC operations, the Proteva assets will
enable us to keep up with demand and further expand our penetration
in the retail channel," said Mr. Leeds.
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