Press Releases
MTM Technologies Announces Closing Of Pequot Ventures Investment
• Initial Pequot Funding Of $7 Million
• Additions To Board Of Directors & Appointment Of Ceo
• One Year Extension Of $10 Million Credit Facility
VALLEY COTTAGE, N.Y.--(BUSINESS WIRE)--05/24/2004--MTM Technologies, Inc. (f/k/a Micros to Mainframes) (“MTM”) (NASDAQ: MTMC), a leading provider of networking, storage, security and collaboration solutions, announced that on May 20, 2004 its shareholders approved an investment of up to $25 million by Pequot Ventures (“Pequot”), the private equity arm of Pequot Capital Management, Inc., a leading investment firm. The Company completed the initial $7 million tranche of the Pequot investment on May 21, 2004. The shareholders also voted to change the Company’s name to MTM Technologies, Inc., to amend the Company’s certificate of incorporation to increase the authorized capital stock and provide for “blank check” preferred stock, to adopt certain other corporate governance provisions and to adopt the Company’s 2004 Equity Incentive Plan.
The approved transactions authorize the sale to Pequot of up to $25 million of convertible preferred stock and warrants in tranches. The initial tranche of $7 million is in the form of preferred stock, convertible into 3,255,813 shares of the Company’s common stock at a conversion price of $2.15 per share, and 500,000 warrants with an exercise price of $2.46 per share. The purchase of any or all of the second and later tranches, in an aggregate investment amount of up to $18 million, is solely at Pequot’s option.
The Company also announced that Pequot’s Managing Director Gerald A. Poch, Senior Vice President Richard Heitzmann and Vice President Amish Jani have joined the Company’s Board of Directors. Mr. Poch was also appointed as the non-executive Chairman of the Board of Directors. Also, as planned, Francis J. Alfano was appointed Chief Executive Officer and a director of the Company. In addition, the Company elected Alan Schwartz as Senior Vice President and Chief Financial Officer and John F. Kohler as Senior Vice President and General Counsel. Howard Pavony, formerly Chief Executive Officer, has assumed the role of President and Chief Operating Officer and Steven Rothman, formerly Chief Financial Officer, will continue with the Company as an Executive Vice President. The Company’s existing independent directors, William Lerner, Alvin E. Nashman and Arnold J. Wasserman, will remain on the Board of Directors.
Mr. Alfano was pleased to announce the extension of the Company’s existing working capital facility for an additional year.
Mr. Pavony said “The Pequot investment will enable the Company to aggressively build a national organization focused on the mid-tier market, one of the fastest growing and dynamic sectors in the marketplace. All of us at the Company are excited about the additions to our senior management team. They each possess valuable and extensive experience in the IT services industry and growing businesses through organic growth and acquisition strategies. We believe that our strategic partnership with Pequot will provide the vision and capital necessary to drive our anticipated expansion. We feel that this is an extremely important day in the Company’s history and a natural and critical phase of the evolution of our organization, ensuring our success and a bright future for all of our clients, vendor partners and employees.”
Mr. Poch noted, “Pequot invests in growing companies poised to move to the next level. MTM is well positioned to become the leading national provider of IT solutions to the middle market. MTM provides a solid platform for a national build-out of middle market solution providers. We are very excited about the completion of our initial $7 million investment in MTM’s growth through acquisition strategy.”
Mr. Alfano said “The financial backing of Pequot, coupled with MTM as a platform, provides a strong foundation for our consolidation strategy of creating a national IT solution provider. Rapid advances in technology are driving our middle market customer’s infrastructure needs for networking, storage, security and collaboration solutions. Our customers look to MTM and our technical talent as trusted advisors as they seek to execute their IT strategies.”
MTM Technologies is a premier provider of network analysis and diagnostics, management, architecture, design, implementation and support services, as well as technology acquisition and deployment workflow management systems serving the New York Tri-State area since 1986. The Company performs services in the areas of Network Analysis, Network and Systems Management, Internet Services, IT Consulting, Data & Network Security, Network Infrastructure Engineering, Server-Based Computing, Active Directory, Data and Network Communications, Technology Acquisition and Deployment, Process Automation, Professional IT Staffing and Enterprise LifeCycle Managed Services to create a comprehensive computer and communication services suite. The Company maintains sales, technology labs, help desk, network management operation centers, training and service facilities in Valley Cottage, New York, New York City, and Connecticut. MTM is a certified and authorized reseller/partner and integrator for Microsoft, Cisco, Citrix, HP/Compaq, Neoteris, SecureWave, Symantec, Internet Security Systems, Packeteer, NetIQ, Intel, IBM, Dell Computer, Lexmark and Novell. For more information visit the Company’s web sites at www.MTM.com and www.pivottech.com.
Pequot Ventures is the direct venture investment arm of Pequot Capital Management, Inc. and has a direct investment focus on today's most dynamic startup, growth stage and later-stage companies in the technology, telecommunications, defense and healthcare sectors. Pequot creates value by bringing energy and substantial industry expertise to its portfolio companies through the collective intellectual capital, deep operating experience and extensive network of its investment team. The firm leverages its unique multi- billion dollar presence across both public and private equity markets to help build competitive, sustainable businesses in fast changing environments throughout their lifecycle. Pequot accomplishes this goal in close partnership with the founders and management teams of its portfolio companies.
