CARY — After a big December, Mobile Reach International is well on its way to becoming one of the top mid-market technology companies to offer end-to-end business solutions for the mobile workforce.

Just this month, the Cary-based firm has disclosed major clients such as Borders Group and Lockheed Martin, completed its move into new office space four times the size of its previous location, and hired four new sales executives. Mobile Reach, which also has deals with Wal-Mart, Hershey’s, Time Warner Cable and Duke Health, also has said “the pipeline is booked” as it expects even more customer announcements of similar size before the year is out.

Then today…one week before Christmas…Mobile Reach announced it would acquire Waves Consulting Group, a Cary-based hardware and IT solutions company that maintains considerable market share across the Southeast. Waves’ core offering is the virtual CIO product known as Helping Hands.

The agreement provides for Mobile Reach to acquire Waves by way of merger, pursuant to which Mobile Reach will issue 1.3 million shares of its common stock. Waves will operate as a wholly-owned subsidiary of Mobile Reach International.

Upon completion of the merger, Mobile Reach will have approximately 40 employees. That’s up considerably from the 22-person staff the firm had pre-merger, including the four recent hires in sales. It’s also more than the 30 Mobile Reach expected to have by the end of the year, according to recent predictions from the company.

Mobile Reach projects that Waves merger will allow the combined company to generate in excess of $5 million in annual revenues during 2004, making the acquisition accretive to earnings.

Near-term, Waves will maintain its individual corporate identity as a subsidiary of Mobile Reach. Paige Bendixsen will remain president of the subsidiary and both firms will be headquartered in the new corporate facilities, located in Cary.

The companies plan to complete the merger by the end of December.

“This is a great opportunity for Waves to join with a firm that values the marriage of strategy and IT, and allows us to expand our service offerings to include end-to-end mobility solutions,” said Bendixsen. “We are extremely excited to be part of a collective mission to provide compelling and differentiated client services.”

At Mobile Reach, management believes that applying Waves’ innovative business model to the existing businesses will allow clients to take advantage of products and services from hardware to applications design and implementation.

“Waves Consulting Group and Mobile Reach International share a commitment to finding strategic answers to clients’ challenges and delivering on-target solutions that meet their business objectives,” said Michael Hewitt, chief executive officer of Mobile Reach. “This first acquisition furthers the Mobile Reach commitment to becoming the go-to mobility company of choice.”

Mobile Reach:

Waves Consulting Group: