Capital Growth Systems Acquires 20/20 Technologies, Inc. and
Magenta netLogic, Ltd.
SCHAUMBURG, Ill.--(BUSINESS WIRE)--Sept. 12, 2006--Capital
Growth Systems, Inc. (OTCBB:CGSY.OB - News), announced today
that it has completed the acquisition of 20/20 Technologies
Inc., the holding company whose assets include total
ownership of UK-based Magenta netLogic, Ltd., a global
leader in circuit pricing and network optimization. The
transaction represents part of the current CGSY strategic
program of expansion to become a leading telecommunications
services and solutions provider.
"The Magenta acquisition gives us a unique position with a
communications supply chain management system, a global
customer base and an experienced team in North America and
Europe," stated Tom Hudson, CGSY chief executive officer.
"Multi-national corporations, systems integrators and
telecommunications companies have traditionally tried to
execute on their networking requirements without the
necessary keys to the supply chain in terms of information
regarding circuit supply, availability and pricing. The
Magenta intellectual property, technology and databases are
a significant step toward providing that clarity, and we
believe that will allow us to add significant value to our
current and future customers. Magenta is already well
established in a number of the largest global carrier and
systems integrator operations."
Patrick Shutt, former CEO of 20/20 and current CGSY
president, stated, "CGSY is engaged in an exciting period of
growth. We believe the significant savings Magenta has
already shown existing consulting clients give a formidable
competitive edge to the company moving forward. We believe
that the combination of this transaction and the strategic
objectives of the company will give CGSY the framework to
build the first Smart VNO capable of consistent, speedy and
economic design and delivery of network solutions of any
size or complexity with a global reach."
CGSY also recently announced the execution of a letter of
intent to acquire Houston-based Global Capacity Group, Inc.,
an expanding connectivity provider.
About Capital Growth Systems, Inc.
Capital Growth Systems, Inc. is a public reporting company
under the Securities Exchange Act of 1934 and is based in
Schaumburg, Ill. The company currently has four wholly-owned
subsidiaries: NexVU Technologies, LLC (www.nexvu.com);
Frontrunner Network Systems Inc. (www.frontrunnernetworks.com);
20/20 Technologies, Inc. (www.20-20technologies.net); and
Magenta netLogic, Ltd. (www.magenta-netlogic.com). The
company's common stock is currently quoted on the Bulletin
Board under the stock symbol CGSY.OB
Forward-Looking Statements
Certain information discussed in this press release may
constitute forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995 and the
federal securities laws. Although the company believes that
the expectations reflected in such forward-looking
statements are based upon reasonable assumptions at the time
made, it can give no assurance that its expectations will be
achieved. Readers are cautioned not to place undue reliance
on these forward-looking statements.
Forward-looking statements are inherently subject to
unpredictable and unanticipated risks, trends and
uncertainties such as the company's inability to accurately
forecast its operating results; the company's potential
inability to achieve profitability or generate positive cash
flow; the availability of financing; and other risks
associated with the company's business. For further
information on factors which could impact the company and
the statements contained herein, reference should be made to
the company's filings with the Securities and Exchange
Commission, including annual reports on Form 10-KSB,
quarterly reports on Form 10-QSB and current reports on Form
8-K. The company assumes no obligation to update or
supplement forward-looking statements that become untrue
because of subsequent events.
Source: Capital Growth Systems, Inc.
|
