New England Business Service (NEBS) To Increase Investment in Advantage Payroll
Wednesday, August 15, 2001
GROTON, Mass.-Aug. 14, 2001--New England Business Service, Inc. today announced that it has increased its investment in Advantage Business Services Holdings, Inc., which operates as Advantage Payroll Services, through the purchase of additional common shares for $17.7 million in cash. Advantage is the fifth largest payroll processing company in the U.S. This investment increases the Company's ownership position in Advantage to approximately 18% of their outstanding common stock. The Company also holds performance-based warrants to purchase additional shares of Advantage over the next four years. Advantage, a privately owned company, processes payrolls throughout the U.S. and serves as the processor for payrolls marketed by the Company through its McBee, NEBS and RapidForms channels. Robert J. Murray, president and CEO of New England Business Service, said, "Advantage has proven to be a great partner in our payroll service alliance as well as a vibrant, fast-growing company. We are off to a strong start in demonstrating our ability to generate payrolls and are confident that the current fiscal year will see further progress. We bring a unique capability to access the market through either direct marketing or our McBee sales force. Securing this increased ownership position enhances our shareholders' ability to participate in the value we are contributing to Advantage's business model. "New England Business Service has become a significant contributor to Advantage's distribution and growth strategy,'' commented Charles W. Lathrop, Jr., Advantage President and CEO. "Our organizations are working very well together. We appreciate the confidence they are expressing in us through this additional investment.''