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/ BARBARA MURPHY

BrightStar Seeks $60 Million in Public Offering

January 06, 1998|BARBARA MURPHY

BrightStar Information Technology Group, formed in May to consolidate a Ventura firm and six other companies that provide computer services, plans to sell 3.75 million common shares in an initial public offering.

In a filing with the Securities and Exchange Commission, the Houston-based company estimated that the public offering could raise $60.38 million.

BrightStar was organized to acquire companies that provide information-technology products and services to large corporations and organizations, the filing said. The group will provide services such as software implementation, training and database design and maintenance.

The founding companies are Zelo Group Inc., Ventura; Software Consulting Services America LLC, San Francisco; SCS Unit Trust, Melbourne, Australia; Software Innovators Inc., Little Rock, Ark.; MindWorks Professional Education Group Inc., Scottsdale, Ariz.; Brian R. Blackmarr and Associates Inc., Dallas; and Integrated Controls Inc., Lafayette, La.

These companies provide a variety of services. For example, Zelo specializes in computer-based legal support services, MindWorks provides training for Microsoft Corp. software products, and Integrated Controls focuses on the design of computer systems for the energy industry. BrightStar will use $32.4 million of the IPO proceeds to pay for the seven acquisitions, the filing said. Another $5.1 million will be used to repay the companies' outstanding debt.

Any remaining proceeds will be used for working capital and general corporate purposes, which may include future acquisitions.

For the nine months that ended Sept. 30, BrightStar reported a net loss of $499,000, or 7 cents a share, compared with a net loss of $901,000, or 12 cents a share, a year earlier. Revenue for the recent period increased to $37.7 million from $22.4 million the previous year.

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