insci-statements.com Sells Assets of Lognet to Israel Firm, Paynet
Press release from the issuing company
WESTBOROUGH, MA (March 9, 2001)....insci-statements.com, Corp. (Nasdaq: INSI), doing business as INSCI, announced today that in a move to monetize a non-strategic asset, it has sold most of the assets of its Lognet subsidiary to privately-held Paynet Electronic Billing, Ltd of Haifa, Israel.
The assets sold to Paynet include all intellectual property rights, technology, development tools, hardware and inventory related to Lognet’s existing Billminer electronic bill presentment and payment software and Oneprint, Emulation and Anota product lines, as well as all customer lists, marketing materials and other assets directly related to the conduct of Lognet’s business including its name. Paynet has also transferred most of Lognet’s employees resident in Israel to its payroll assuming responsibility for all compensation, vacation and other benefits.
According to the announcement by INSCI President and CEO Lori R. Frank, the sale is valued at up to $3.6 million, including a 20 percent equity stake in Paynet valued at $2.0 million and $1.6 million of royalties on sales of the Billminer software and Oneprint, Emulation and Anota product lines, which includes royalties on sales of any future products developed from the acquired technologies and intellectual property.
At closing, INSCI received the Paynet equity and a $100,000 cash down payment on the future royalties, which will be payable quarterly. Following this closing, INSCI expects to receive an additional cash payment for Paynet’s near term purchase of selected Lognet inventory at a mutually agreed price. The price of the inventory to be purchased is not included in the estimated $3.6 million value of the transaction just closed. Lognet was originally purchased by INSCI as part of its InfiniteSpace.com strategy and the Lognet assets purchased by Paynet were previously written off by INSCI in its second quarter of fiscal year 2001, which ended September 30, 2000, as part of the closing of the InfiniteSpace.com subsidiary.
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