St. Louis, Missouri, USA - Data Research Associates, Inc. (DRA) (NASDAQ: DRAI) announced today that its board of directors has retained an investment banking firm, Crescendo Capital Partners, LLC, principally to provide assistance in identifying and qualifying strategic acquisitions and investments and to provide other financial advisory services.
According to DRA president and chief executive officer, Michael J. Mellinger, DRA views this action as a proactive step that DRA believes will more fully utilize the Company's sound financial resources and ultimately enhance shareholder value.
Mellinger commented: "Historically, DRA has initiated its own acquisition activity. We have been pleased with the synergistic fit and the returns we have achieved on these investments. We believe the time has come to reinvigorate our longstanding policy of seeking strategic acquisitions, by enlisting the assistance and specialized expertise of Crescendo Capital. Through its efforts in identifying and qualifying prospective acquisition candidates, we are hopeful that Crescendo will bring to DRA interesting opportunities to review. The Company believes that its strong balance sheet and cash position will help facilitate the search for appropriate acquisitions."
Mellinger continued: "This new initiative is in addition to our strategy to continue growing our position in the library marketplace where we have a commitment to providing the highest-quality products and services."
At the most recent quarter-end June 30, 2000, DRA's cash and short-term investment position was $17.7 million, or $3.77 per share; the Company has no long-term debt.
DRA will consider a wide range of options in terms of transaction size and businesses. It is looking for acquisitions or partnering candidates that are complementary to its existing base of business - companies or technologies that will broaden its skill set, its customer base, and its product offering. DRA's core competencies revolve around libraries, networks, database hosting and database indexing.
Crescendo Capital Partners, LLC is an investment banking and principal investment firm headquartered in Kansas City, Missouri. The company was founded in 1999 by Duncan O'Brien to make investments in and provide strategic advisory and capital raising services to small and mid-cap companies. O'Brien spent 13 years at Goldman, Sachs & Co., and two years as Vice Chairman and Director of Investment Banking at George K. Baum & Company prior to founding Crescendo Capital.
Data Research Associates, Inc., headquartered in St. Louis, is a leading systems integrator for libraries and other information providers, offering its own proprietary information services software; third-party software and hardware; Internet, World Wide Web and other networking services; and other related support services.
This news release contains forward-looking statements, including statements as to anticipated or expected results, beliefs, opinions and future financial performance. These forward-looking statements are based on current expectations and assumptions and involve risks and uncertainties that could cause DRA's actual results to differ materially. Specific risk factors for the statements contained herein include, but are not limited to, the Company's ability to continue to enhance the Taos product; customer acceptance of that product; DRA's ability to meet installation schedules; and timing of negotiations for sites who have selected Taos but have not yet signed a contract. Some of these risk factors, as well as additional risk factors, are discussed in detail in DRA's Annual Report and in Exhibit 99-1 of its Form 10-K for fiscal year 1999. DRA does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.