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Franchise News Release: (Apr-5-1999)
ANAHEIM, California (April 5, 1999) -- New Horizons Worldwide Inc., the world's largest independent IT training company, Monday announced the acquisition of its franchise locations in Charlotte, North Carolina and Sacramento and Stockton, Calif. New Horizons purchased the assets of the Charlotte location for consideration including approximately $3.2 million in cash and 40,088 shares of New Horizons stock. Based upon Thursday's closing price on The Nasdaq Stock Market of $19 15/16, the transaction is valued at approximately $4 million. The selling shareholder will also receive additional consideration, in cash and stock, if certain future performance targets are achieved. The Sacramento and Stockton locations were purchased for consideration of approximately $3.2 million in cash. New Horizons anticipates the acquisitions to be accretive to earnings per share. New Horizons Computer Learning Center of Charlotte had revenues of $4 million in 1998, and is expected to have 1999 revenues in excess of $5 million. New Horizons Computer Learning Centers of Sacramento and Stockton had combined revenues of $7 million in 1998, and are expected to have revenues in excess of $8 million in 1999. Charlotte, Sacramento and Stockton all provide training under the Microsoft Certified Technical Education Center (CTEC) and Novell Authorized Education Center (NAEC) programs. The local management teams will remain in place. With the acquisition of these three locations, New Horizons has successfully acquired and integrated seven training centers in the last 12 months that had been operated by franchisees. The repurchased locations in Memphis, Nashville, Hartford, Albuquerque, Charlotte, Sacramento and Stockton are expected to generate consolidated annualized revenues of $32 million. New Horizons continues to pursue its strategy of buying back franchise locations that are profitable, located in strategic markets and have quality management. The Company expects to close additional transactions this year. About New Horizons Worldwide Inc. New Horizons Worldwide Inc. is the world's largest independent IT training company, meeting the needs of more than 2.4 million students each year. New Horizons offers a variety of flexible training choices: instructor-led classes, Web-based training, computer-based training, computer labs, certification exam preparation tools and 24-hour, seven-day-a-week help desk support. New Horizons has a company-owned and franchised network of more than 200 locations in 30 countries. In 1998 New Horizons had corporate revenues of $73 million and system-wide training revenues of $358 million. New Horizons Worldwide Inc., 714-438-9473 |
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