EXHIBIT 99.1
INFOCROSSING LOGO
President & COO SVP Finance
Patrick A. Dolan William McHale
Infocrossing, Inc. Infocrossing, Inc.
714-986-8429 201-840-4732
pdolan@infocrossing.com wmchale@infocrossing.com
Media Relations Investor Relations
Laura Turtzer Matthew Hayden
Infocrossing, Inc. Hayden Communications, Inc.
714-986-8397 (760) 487-1137
lturtzer@infocrossing.com
INFOCROSSING TO ACQUIRE SEGMENT OF VERIZON INFORMATION TECHNOLOGIES INC.'S
HEALTHCARE BUSINESS
EXPANDS COMPANY'S POSITION IN THE BPO-HEALTHCARE SECTOR
LEONIA, NJ, SEPTEMBER 1, 2004 - INFOCROSSING, INC. (NASDAQ: IFOX), a provider of
selective IT outsourcing and business processing solutions, announced today that
it has entered into a definitive agreement to acquire a segment of the
healthcare processing business of Verizon Information Technologies Inc. (VITI)
that provides managed care, Medicare, and Medicaid processing services. VITI is
a subsidiary of Verizon Communications Inc. (NYSE: VZ). The transaction is
expected to close within thirty days. The Company plans to pay the purchase
price of $43.5 million in cash principally with cash on hand and the balance
with funds borrowed under an existing line of credit.
"This transaction aligns well with Infocrossing's growth strategy and further
increases our reach in the healthcare market," stated Patrick Dolan, President
and Chief Operating Officer of the Company. "This step will expand the Company's
position in the BPO-Healthcare sector. Furthermore, the acquisition underscores
the Company's commitment to growth by complementing Infocrossing's existing
healthcare customer base and leveraging our national infrastructure to provide
robust, highly reliable, secure and cost effective IT capabilities," concluded
Mr. Dolan.
"The acquisition and integration of VITI will follow the same approach as we had
used in the acquisition and integration of AmQUEST, Inc. and ITO Acquisition
Corporation, doing business as Systems Management Specialists," commented Zach
Lonstein, Infocrossing's Chairman and Chief Executive Officer. "Consistent with
these prior transactions, we expect the acquisition of this portion of VITI to
be accretive on an earnings per share basis over the twelve months after the
closing," concluded Mr. Lonstein.
ABOUT INFOCROSSING, INC. (http://www.infocrossing.com)
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Infocrossing, Inc. (IFOX) is a provider of selective IT outsourcing services,
delivering the computing platforms and proprietary systems that enable
companies, regardless of industry, to process data and share information within
their business, and between their customers, suppliers and distribution
channels. Leading companies leverage Infocrossing's robust computing
infrastructure, skilled technical team, and process-driven operations to reduce
costs and improve service delivery by outsourcing the operation of mainframes,
mid-range, open system servers, networks and business processes to Infocrossing.
SAFE HARBOR FOR FORWARD-LOOKING AND CAUTIONARY STATEMENTS
This release contains forward-looking statements within the meaning of Section
21E of the Securities Exchange Act of 1934, as amended. As such, final results
could differ from estimates or expectations due to risks and uncertainties,
including but not limited to: incomplete or preliminary information; changes in
government regulations and policies; continued acceptance of the Company's
products and services in the marketplace; competitive factors; technological
changes; the Company's dependence upon third-party suppliers; intellectual
property rights; difficulties with the integration of ITO Acquisition
Corporation d/b/a Systems Management Specialists and VITI; and other risks. For
any of these factors, the Company claims the protection of the safe harbor for
forward-looking statements contained in the Private Securities Litigation Reform
Act of 1995, as amended.
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