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Research Engineers expands
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December 3, 1999: 5:20 p.m. ET
Travel agency buy aimed at boosting new e-commerce unit
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NEW YORK (CNNfn) - Research Engineers Inc. on Friday said it has signed a letter of intent to acquire e-Destinations, a full-service, online travel agency targeting Asia/Pacific countries.
The announcement drove its stock price up 4-˝ points or more than 16 percent to close at 32 on Nasdaq. Financial terms of the acquisition were not disclosed.
Executives at Research Engineers (RENG), a Yorba Linda, Calif.-based company, which has its roots as a developer of engineering software and IT services, said the acquisition is aimed at expanding the content provided by its recently launched e-commerce business unit.
In April, Research Engineers entered into the e-commerce market with the launch of a new business unit which through its Web site at www.city-on-net.com, Web content and e-commerce services targeted expatriates of Asia-Pacific countries now living in large cities in Europe and the United States.
e-Destinations, an Artesia, Calif.-based private company established in 1991, is a full-service travel agency with special emphases on Asian-Pacific countries. The company offers services including airline ticket sales, specialty tours and cruises as well as a special travel agent section where inquiring agents can receive online discount rates.
"The integration of e-Destinations into city-on-net.com, which targets some 90 million expatriates of Asia-Pacific countries, will position the company to take advantage of the significant monies spent yearly on home-country travel,” said Research Engineers President and COO Jyoti Chatterjee.
Executives said that city-on.net.com will encompass three revenue components: travel services, telephone communications and ethnic products and gifts.
"The acquisition of the travel services component will greatly augment the present travel services and play a significant role in the infrastructure development of city-on-net.com,” said Amrit K. Das, the company’s chairman and chief executive.
For the quarter ending Sept. 30, the company posted revenue of $3.9 million and a net loss of $286,000. 
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