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EXHIBIT 99.1
FUTURELINK(TM) TO ACQUIRE MICRO VISIONS,
THE #1 CITRIX RESELLER AND INTEGRATOR IN NORTH AMERICA
DEAL EXPANDS SCOPE AND REACH OF FUTURELINK'S ASP AND INTERNET SOFTWARE
RENTAL SERVICES PROVIDING SIX U.S. OFFICES AND 1,300 EXISTING CUSTOMERS
IRVINE, CALIFORNIA, JUNE 3, 1999 - FutureLink Distribution Corp.
(NASD-OTC-BB:FLNKD), a leading Application Service Provider (ASP), today
announced the signing of a definitive agreement to acquire Executive LAN
Management, Inc., operating as Micro Visions, of Irvine, California.
In 1998, Micro Visions was the #1 Citrix reseller and integrator of
server-based computing systems in North America. Micro Visions has approximately
80 employees and had 1998 revenues of $13.7 million and was profitable. In
addition to its Irvine headquarters, Micro Visions has offices in Atlanta, Las
Vegas, Los Angeles, Phoenix and Raleigh/Durham. The cash and stock agreement is
subject to several conditions, including approval by FutureLink's shareholders,
and is expected to close by September of 1999. Under the agreement, Micro
Visions shareholders will receive $12 million in cash and 6 million post-reverse
split FutureLink common shares when the transaction closes. In addition, Micro
Visions' shareholders could earn a further 2.4 million post-reverse split shares
based on achievement of specified performance targets this year. FutureLink has
made a $1 million deposit toward the cash portion of the acquisition in
conjunction with the signing of the definitive agreement. The valuation of the
agreement based on the stock price at close of market on June 2, 1999 would make
the acquisition amount (not including 2.4 million earn out) approximately $51
million.
"This acquisition is consistent with FutureLink's strategy to
aggressively grow our ASP business," said Raghu Kilambi, FutureLink's Chief
Financial Officer. "With the acquisition of Micro Visions, FutureLink
accelerates its entrance into the U.S. market and gains a large customer base
that has already embraced server-based computing, an integral part of ASP
services."
Cameron Chell, CEO of FutureLink, will remain CEO of the combined
companies. Glen Holmes, founder and CEO of Micro Visions will become President.
The partners intend for the merged company to be renamed FutureLink Corp. and be
headquartered in Irvine, California with the Company retaining executive offices
in Calgary, Alberta.
"Since the launch of our ASP services in February of 1998, we have seen
exceptional customer response," said Chell. "This acquisition creates the
largest single pool of systems engineers for our enabling Citrix technology,
which allows us to successfully address the rapidly increasing customer demand
for our ASP services."
"Our combined organizations are well positioned to transform the
complex process of managing computers into one that's as simple for customers as
using the telephone," said Holmes. "Our ultimate goal is to change the way small
to mid-size companies do their business computing."
The acquisition will allow FutureLink to accelerate U.S. expansion of
its computer utility operation which provides customers with a turnkey computing
solution for a monthly fee.
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FutureLink's ASP service allows organizations to outsource all
computing service and support, and precisely manage total cost of technology
ownership. FutureLink customers subscribe to the computer utility service on a
monthly, per-seat basis, receiving thin-client or PC hardware, fast Internet
access to brand name application software and complete support services for a
flat monthly fee.
Micro Visions is the leading North American reseller of products from
Citrix Systems, Inc. Citrix products provide the foundation for FutureLink's ASP
and Computer Utility Service, allowing subscribers to access virtually any
application, across any type of network connection via any type of client
hardware.
In March 1999, FutureLink opened a new server farm/data center in
Calgary. The new facility is part of a growing strategic network to provide
off-site computing service for thousands of new subscribers throughout North
America.
ABOUT MICRO VISIONS
Founded in 1987, Micro Visions is one of North America's leading
server-based computing systems integrators. The company is based in Irvine,
Calif. and has branch offices in Atlanta, Las Vegas, Los Angeles, Phoenix and
Raleigh/Durham. Customers include such leading organizations as Motorola, Bank
of America, Avery Dennison, Amgen and Allergan. For further information on Micro
Visions' services, call (888) 4MICROV or visit the Micro Visions' Web site at
http://www.MicroVisions.com.
ABOUT CITRIX
Citrix Systems, Inc. (Nasdaq:CTXS), is the world leader in system
software for server-based computing that offers a fast, easy and cost-effective
way to deliver business-critical applications to anyone, anywhere, anytime.
ABOUT FUTURELINK
FutureLink is a founder of the Application Services Provider (ASP)
industry. According to Forrester Research Inc., the application outsourcing
market is projected to reach $20 billion by 2001. FutureLink provides small and
mid-sized businesses (10-1,000 employees) with off-site, Internet-based
computing, allowing subscribers to off load hardware/software upgrade cycles,
precisely control total cost of technology ownership and focus on their core
businesses.
FutureLink's expertise in application hosting on a monthly subscription
basis, outsourcing and facility management, and business practices consulting
enables the company to offer an all-inclusive, trouble-free service at a
predictable price.
FutureLink, "The Computer Utility Company," offers computer and
information service as transparently and reliably as today's utilities deliver
electricity, water and telephone services.
For more information, contact FutureLink toll-free at (877) 216-6001;
e-mail: sales@futurelink.net; or visit the FutureLink Web site at
http://www.futurelink.net.
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Forward-looking statements and comments in this news release are made pursuant
to safe harbor provisions of the Securities Exchange Act of 1934. Such
statements relating to, among other things, the prospects for the companies to
complete the transaction and enhance operating results, are necessarily subject
to risks and uncertainties, some of which are significant in scope and nature.
These risks may be further discussed in periodic reports and registration
statements to be filed by the company from time to time with the Securities and
Exchange Commission in the future.