HERZLIYA, Israel--October 6, 2008--BluePhoenix Solutions (NASDAQ: BPHX), the leader in value-driven legacy modernization, today announced the closing of the previously announced sale of its interest in its subsidiary Mainsoft Corporation to Catalyst Private Equity Partners (Israel) II LP.
The consideration consists of a cash payment of $1.7 million at closing and additional contingent consideration based on the potential occurrence of either a sale of such holdings or a qualified initial public offering within a specified time period as agreed by the parties.
Mainsoft’s results were classified in the company’s financial results as discontinued operations since January 2008.
About BluePhoenix Solutions
BluePhoenix Solutions (NASDAQ: BPHX) is a leading provider of value-driven modernization solutions for legacy information systems. BluePhoenix offerings include a comprehensive suite of tools and services from global IT asset assessment and impact analysis to automated database and application migration, re-hosting, and renewal. Leveraging over 20 years of best-practice domain expertise, BluePhoenix works closely with its customers to ascertain which assets should be migrated, redeveloped, or wrapped for reuse as services or business processes, to protect and increase the value of their business applications and legacy systems with minimized risk and downtime.
BluePhoenix provides modernization solutions to companies from diverse industries and vertical markets such as automotive, banking and financial services, insurance, manufacturing, and retail. Among its prestigious customers are: Aflac, CareFirst, Citigroup, Danish Commerce and Companies Agency, Desjardins, Los Angeles County Employees Retirement Association, Merrill Lynch, Rabobank, Rural Servicios Informáticos, SDC Udvikling, TEMENOS, Toyota and Volvofinans. BluePhoenix has 15 offices in the USA, UK, Denmark, Germany, Italy, France, The Netherlands, Romania, Russia, Cyprus, South Korea, Australia, and Israel.
About Catalyst
Catalyst Funds are Israeli-based private equity funds investing in maturing technology-related companies that are in pre-IPO, expansion or turnaround phases. Investment targets consist of companies with technologies and products that answer market needs, strong management and significant growth potential in the European and North American market. Our goal is to provide maturing companies with the necessary resources to attain global leadership in their respective market sectors. Catalyst enhances the value of invested companies by using its wide European network, available operating platforms of our partners and the diverse background of our managers.
(http://www.catalyst-fund.com)
SAFE HARBOR: Certain statements contained in this release may be deemed forward-looking statements, with respect to plans, projections, or future performance of the Company, the occurrence of which involves certain risks and uncertainties that could cause actual plans to differ materially from these statements. These risks and uncertainties include but are not limited to: market demand for the Company’s tools, successful implementation of the Company’s tools, competitive factors, the ability to manage the Company’s growth, the ability to recruit and retrain additional software personnel, and the ability to develop new business lines. All names and trademarks are their owners’ property.
Contact
Varda Sagiv
BluePhoenix Solutions
+97299526100
vsagiv@bphx.com