SOURCE: Caneum, Inc.

January 04, 2007 07:30 ET

Caneum, Inc. Completes Acquisition of Continuum Systems Pvt. Ltd.

Accretive Acquisition Results in Expanded Operations Worldwide, Including Caneum Asia Pacific Pte. Ltd. in Singapore and Caneum India Pvt. Ltd. in India

NEWPORT BEACH, CA -- (MARKET WIRE) -- January 4, 2007 -- Caneum, Inc. (OTCBB: CANM), a global provider of business process and information technology outsourcing services, today announced that effective December 31, 2006, it has closed its acquisition of Continuum Systems Pvt. Ltd. of India.

Alan Knitowski, Chairman of Caneum, commented, "We are extremely pleased to have closed our acquisition of Continuum Systems Pvt. Ltd. and look forward to continuing to expand our international outsourcing resources and capabilities. Both the Indian and Asian markets continue to grow aggressively and we expect that our new multi-country delivery footprint will provide a strong foundation to further our business model of growing via organic sales and additional accretive acquisitions."

The Company has initiated activities in India to rename Continuum Systems Pvt. Ltd. to Caneum India Pvt. Ltd. and expects to complete this process within the next 60 days. Jesper Lindorff, former Managing Director of Continuum Systems Pvt. Ltd., is now Managing Director and CEO of the Company's Indian operations and all of Continuum's approximately 100 employees have been retained.

Continuum Pvt. Ltd. was generating both positive operating cash flow and net income at closing. On an un-audited basis, it generated approximately $384K in revenues and $191K in gross profit for the quarter ended September 30, 2006. On an annualized basis, this quarterly performance equated to approximately $1.54M in revenue and approximately $764K in gross profit.

Full details of the acquisition can be found in the 8-K now on file with the SEC and submitted in parallel to this release.

About Caneum, Inc.:

Caneum, Inc. is a global provider of business process and information technology outsourcing services across vertical industries, including technology, energy, government, transportation, financial services, education and healthcare. The Company provides a suite of business strategy and planning capabilities to assist companies with their "make versus buy" decisions in the areas of data, network, product development, product maintenance and customer support, and fulfills its services in-house, on-shore, near-shore and off-shore, depending on the business goals and objectives of its global customers. In parallel, the Company is opportunistically pursuing accretive acquisitions within its core outsourcing product and service suite in order to broaden its core capabilities, expand its customer base and supplement its organic growth. For more information, please visit the Company's web site at http://www.caneum.com.

About Continuum Systems Pvt. Ltd.:

Continuum Systems Pvt. Ltd. is an approximately 100-person off-shore outsourcing company founded in 2002 and based in New Delhi (Gurgaon), India. The Company provides (1) application services, including development, integration, re-engineering, migration and maintenance, (2) customer support, including e-mail, chat and voice, (3) business process outsourcing, including technical support, data conversion and data mining, and (4) e-services, including web design, search engine optimization and e-commerce. The Company's customer base includes companies from Sweden, Switzerland, the United Kingdom, Nigeria, India, Mauritius, Indonesia and the United States. For more information, please visit the Company's web site at www.continuum-systems.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: With the exception of historical information, the statements set forth above include forward-looking statements that involve risk and uncertainties. The Company wishes to caution readers that a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Those factors include, but are not limited to, the risk factors noted in the Company's filings with the United States Securities and Exchange Commission, such as the rapidly changing nature of technology, evolving industry standards and frequent introductions of new products, services and enhancements by competitors; the competitive nature of the markets for the Company's products and services; the Company's ability to gain market acceptance for its products and services; the Company's ability to fund its operational growth; the Company's ability to attract and retain skilled personnel; the Company's ability to diversify its revenue streams and customer concentrations; and the Company's reliance on third-party suppliers.

Contact Information

  • Contact:

    Caneum, Inc.
    Gary Allhusen
    EVP, COO & Principal Financial Officer
    (949) 273-4000
    Email Contact

    or

    TMS Capital, LLC
    Thomas Sauve
    (Investors / Media)
    (646) 245-2465
    Email Contact