-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, O+exNCyp4VhRgumVFWiOLpqurEhnHZJGFL1dwGfCccF/YlMB4O+EAHP5gYatV7mC wArTWNmIIWrLmhOYE0vhEw== 0001157523-04-010298.txt : 20041103 0001157523-04-010298.hdr.sgml : 20041103 20041103165516 ACCESSION NUMBER: 0001157523-04-010298 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20041028 ITEM INFORMATION: Entry into a Material Definitive Agreement ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20041103 DATE AS OF CHANGE: 20041103 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DIGITAL FUSION INC/NJ/ CENTRAL INDEX KEY: 0001057257 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER PROGRAMMING, DATA PROCESSING, ETC. [7370] IRS NUMBER: 133817344 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-24073 FILM NUMBER: 041116911 BUSINESS ADDRESS: STREET 1: 4940-A CORPORATE DRIVE CITY: HUNTSVILLE STATE: AL ZIP: 35805 BUSINESS PHONE: 2568372620 MAIL ADDRESS: STREET 1: 4940-A CORPORATE DRIVE CITY: HUNTSVILLE STATE: AL ZIP: 35805 FORMER COMPANY: FORMER CONFORMED NAME: IBS INTERACTIVE INC DATE OF NAME CHANGE: 19980306 8-K 1 a4757833.txt DIGITAL FUSION 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ------------- FORM 8-K ------------- CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 October 28, 2004 Date of report (date of earliest event reported) ------------- DIGITAL FUSION, INC. (Exact Name of Registrant as Specified in its Charter) ------------- Delaware 0-24073 13-3817344 (State or Other Jurisdiction (Commission File Number) (IRS Employer of Incorporation) Identification No.) 4940-A Corporate Drive, Huntsville, AL 35805 (Address of Principal Executive Offices) (256) 837-2620 (Registrant's telephone number, including area code) Not Applicable (Former Name or Former address, if Changed Since Last Report) ------------- Check the appropriate box below if the Form 8-K filing in intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: |_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14D-2(b)) |_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 1.01 Entry Into a Material Definitive Agreement On October 28, 2004, Digital Fusion, Inc. (the "Company") entered into a Stock Purchase Agreement (the "Agreement") with Michael W. Wicks ("Wicks") pursuant to which Wicks agreed to sell all of his outstanding capital stock of Summit Research Corporation ("Summit"). Under the terms of the Agreement, the Company will pay to Wicks (a) $1,600,000 in cash at the closing of the transaction (the "Closing"), (b) 575,000 shares of the Company's common stock as of the Closing, (c) on the six month anniversary of the Closing, $600,000 cash plus an additional amount equal to the excess of Summit's tangible net worth as of the Closing in excess of $900,000 (the "Second Payment"). The tangible net worth of Summit as of the Closing shall be determined by Summit's independent certified public accountants (subject to review by the Company's independent certified public accountants), and (d) a convertible promissory note (the "Note") in the cumulative amount of $2,700,000. To the extent that Summit's tangible net worth as of the Closing is less than $900,000, the Note shall be reduced by that same amount. The principal portion of the Note may be converted at any time by Wicks into a number of shares determined by dividing the converted principal amount of the Note by the Conversion Price of $2.25 per share. In the event the entire Note is converted, Wicks will receive a total of 1,200,000 shares of the Company's common stock. No interest shall accrue on the Note during any calendar month in which the Company's common stock is publicly traded and the average closing price of the Company's common stock is greater than $2.80 per share. The Closing, subject to normal closing conditions, is scheduled for January 3, 2005. Item 9.01 Financial Statements and Exhibits (c) Exhibits. Exhibit No. Description ---------- ----------- 99.1* Press release dated November 3, 2004, issued by Digital Fusion, Inc. * Filed herewith. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized. Dated: November 3, 2004 DIGITAL FUSION, INC. By: /s/ Roy E. Crippen, III ----------------------------------------------- Roy E. Crippen, III, Chief Executive Officer, and Director EXHIBIT INDEX Exhibit No. Description - ----------- ----------- 99.1* Press release dated November 3, 2004, issued by Digital Fusion, Inc. *Filed herewith. EX-99.1 2 a4757833ex991.txt EXHIBIT 99.1 PRESS RELEASE EXHIBIT 99.1 For further information: Roy E. Crippen Chief Executive Officer +1.256.837.2620 rcrippen@digitalfusion.com Digital Fusion Announces Upcoming Acquisition of Summit Research HUNTSVILLE, AL. - November 3, 2004, Digital Fusion, Inc. (OTCBB: DIGF), an information technology ("IT") and engineering services provider, today announced that on October 28, 2004 the Company signed definitive agreements to purchase all of the capital stock of Summit Research Corporation ("Summit"). The closing of the transaction is scheduled for January 3rd, 2005. Mr. Michael Wicks, co-founder of Summit, will manage his current customers and assume the title of president, Summit Research, a division of Digital Fusion. The Company believes that the acquisition will be accretive to earnings immediately. Summit Research Corporation was formed in October 2001 as a small business to provide high-technology engineering support and other technical services to DOD and industrial customers. Summit's market focus is technical support services for the US Army Aviation and Missile Command, Redstone Arsenal, AL. Summit has technical expertise in various engineering disciplines including modeling & simulation, hardware-in-the-loop testing, mechanical design & prototype fabrication, information technology and information management systems, program analysis, and associated technology transfer into production automation processes. The consideration to be paid to Summit by the Company includes cash, common stock and a convertible 3-year promissory note. It is the intent of both Summit and the Company that all employees of Summit become employees of Digital Fusion on January 3rd, 2005 and that, for the foreseeable future, the brand of Summit Research Corporation is maintained. As of September 30, 2004, Summit had 55 employees of which 54 were on funded billable assignments. Summit's un-audited revenue and pretax earnings for the trailing twelve months from September 30, 2004 were $7.81 million and $745,000 respectively. "We are extremely pleased to have Mike and his team join us at Digital Fusion," said Roy Crippen, chief executive officer. "Summit has a terrific reputation in the missile defense industry and will quickly bolster our ability to provide quality engineering services." -MORE- "The acquisition of Summit positions Digital Fusion in a strategic market, that I believe, will continue to grow and is critical to the Department of Defense's future way of doing research and development," said Mr. Gary Ryan, president. "Mike and his team bring a strong capability and customer base in modeling and simulation and engineering analysis at the U.S. Army Aviation and Missile Research, Development and Engineering Center at Redstone Arsenal. They are on the leading edge of technologies being developed to evaluate improvements to existing aviation and missile systems as well as new systems being acquired. In addition, we expect a lot of synergy between Summit and our engineering services and information technology divisions as we are now able to deliver a broader services offering to existing clients of all three divisions. In fact, we have already begun to pursue multiple opportunities for our broader service capabilities." "I am looking forward to joining Digital Fusion and working with Gary Ryan," said Mr. Wicks. "With over thirty years experience in the federal marketplace, Gary is one of the most well respected people in the Huntsville community and a proven leader. Summit's success has been the direct result of our outstanding employees and they're on going commitment to our customer base. We plan to continue to provide innovative solutions to our existing customers as well as cross selling and leveraging our services to Digital Fusion's client base." About Digital Fusion Digital Fusion is an information technology and engineering services company that helps its customers make the most of technology to meet their business needs. Digital Fusion's IT Services division provides solutions to both government and commercial customers, focused in the following areas: Business Process Automation, Application Development and Data Management, Application Security, Web Portals and Digital Dashboards, System Integration and IT Support. Digital Fusion's Engineering Services division supports a variety of customers with state-of-the-art solutions that include: Computational Aerodynamics/CFD; Optical Systems Design, Development and Test; Thermo/structural Dynamics; Models and Simulations; and Ground/Flight Planning, Execution, and Data Analysis. Based in Huntsville AL, Digital Fusion also has offices in Washington D.C., Philadelphia, Orlando, and New Jersey. For additional information about Digital Fusion visit www.digitalfusion.com. Forward Looking Statements. All statements other than statements of historical fact included in this release are forward-looking statements. When used in this release, words such as "anticipate," "believe," "estimate," "expect," "intend" and similar expressions, as they relate to the Company or its management, as well as assumptions made by and information currently available to the Company's management, identify forward-looking statements. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors including, but not limited to: the effect of business and economic conditions; the impact of competitive products and pricing; and capacity and supply constraints or difficulties. Such statements reflect the current views of the Company with respect to future events and are subject to these and other risks, uncertainties and assumptions relating to the operations, results of operations, growth strategy and liquidity of the Company. ### -----END PRIVACY-ENHANCED MESSAGE-----