Neon Completes Acquisitions; Will Take $25m Q3 Charge

Computergram International, August 17, 1999

New Era of Networks Inc said Monday that it has completed the integration of its two most recent acquisitions and has appointed their former chief executive officers to its executive management team. Convoy Corp CEO John Valencia has been named senior vice president of Neon's commercial and enterprise resource planning business unit, while John Moriarty, CEO of Microscript Inc, was named president of Neon's health care business unit.

The Englewood, Colorado-based company also said that it has made upward adjustments on the purchase price for the two acquisitions to more closely reflect the value originally agreed upon when the deals were announced. The adjustments total $16.5m in cash and 618,000 shares of Neon common stock - worth roughly $9.1m based on Monday's closing price. The move will result in a one-time acquisition-related charge of roughly $25m to be taken during the company's third quarter.