Pacific Aerospace and Electronics Inc, a Wenatchee, Washington State-based component company that also claims to be a consolidator of companies has had second thoughts about setting up an information technology group, and says it will concentrate on building up its core business instead. Pacific first said that it was forming an Information Technology Group back in June, and named a set of six software, networking and systems integration companies that it would be acquiring to form the group. They included Jungle Street Inc, an Everett, Washington-based regional internet service provider, whose chief executive officer Roger Vallo was named as the future head of the proposed 100 person unit. The other companies involved were Brigadoon.com Inc of Bellevue, Washington; Market Visibility Inc of New York; Monitrx Inc of Larkspur, California; Digital Network Associates Inc of New York; and Quantum Internet Interlink Inc of Utah. Now Pacific says that after investigating the potential costs and benefits of assembling such a group, which would have concentrated on providing internet access, highly specialized content, proprietary software and related services, it has decided instead to focus on our strength and capabilities in highly engineered manufacturing for the aerospace and electronics markets. Accordingly it has terminated the non-binding letters of intent it had regarding the six firms. Pacific, which achieved profits of $2.27m on revenues of $38.5m last year, says it intends to grow both internally and by acquisition. Left high and dry, Jungle Street has decided to go ahead anyway and acquire three of the companies; Monitrx, Digital Network Associates and Quantum Internet, on undisclosed terms. Pacific said it would continue to work cooperatively with the four companies to achieve an orderly transition, and to arrange repayment of funds that it had loaned out. The re-financing of these loans will include issuance to Pacific of warrants to purchase stock in the new company. Roger Vallo said we believe there is indeed a synergy among these entities that can produce exciting results and increased shareholder value. Monitrx provides proprietary clinical information software for the health care industry, Digital Network Associates provides a transactional data network for various industries, and Quantum is a regional internet service provider. Jungle Street recently merged with Televar Northwest Inc, a Seattle-based internet service provider.
