PRG-Schultz Announces Sale of Meridian VAT Recovery Business
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PRG-Schultz International, Inc. (Nasdaq:PRGX), the world's largest
recovery audit firm, today announced that it has sold its Meridian VAT
recovery business to Averio Holdings Limited, a Dublin, Ireland based
company affiliated with Meridian management, for net proceeds of
approximately $20.9 million plus future payments totaling approximately
$5.5 million, of which approximately $3.7 million is subject to certain
contingencies. PRG-Schultz said that the proceeds from the sale will be
used to reduce its debt.
"Although Meridian is a worldwide
leader in VAT recovery and has been a solid contributor to our earnings
for many years, its business no longer fits our strategy,”
said James B. McCurry, Chairman, President and CEO. "Exiting
this business will allow us to sharpen our focus on our three key
objectives of strengthening our position as the worldwide leader in
accounts payable recovery audit, developing new services to meet the
needs of our strong client base and pioneering recovery auditing into
Medicare.” About PRG-Schultz International, Inc.
Headquartered in Atlanta, PRG-Schultz International, Inc. is the world's
leading recovery audit firm, providing clients throughout the world with
insightful value to optimize and expertly manage their business
transactions. Using proprietary software and expert audit methodologies,
PRG industry specialists review client purchases and payment information
to identify and recover overpayments.
Forward Looking Statements
This press release includes certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995, in
addition to historical information. Such statements include both implied
and express statements regarding the Company’s
financial condition and position, the anticipated use of proceeds from
the sale, the amount of contingent payments the Company will receive
from the sale, and the strength of the Company’s
client base. Such forward looking statements are not guarantees of
future performance and are subject to risks, uncertainties and other
factors that may cause the actual results, performance or achievements
of the Company to differ materially from the historical results or from
any results expressed or implied by such forward-looking statements.
Risks that could affect the Company’s future
performance include the Company’s ability to
retain personnel, Medicare audit revenues that do not meet expectations
or justify costs incurred, the Company’s
ability to replace the declining revenues from its core accounts payable
services, changes in the market for the Company’s
services, client bankruptcies, loss of major clients, and other risks
generally applicable to the Company’s
business. For a discussion of other risk factors that may impact the
Company's business, please see the Company’s
filings with the Securities and Exchange Commission, including its Form
10-K filed on March 23, 2007. The Company disclaims any obligation or
duty to update or modify these forward-looking statements.
