MutualFundWire.com: eVision Agrees to Buy Quaker Funds
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Tuesday, August 10, 1999

eVision Agrees to Buy Quaker Funds


The Denver-based broker/dealer eVision USA.Com, Inc. (EVIS) has signed a letter of intent to acquire control of Quaker Funds, Inc., a small group of six subadvised mutual funds based in Valley Forge, Pennsylvania with about $70 million under management. The terms of the acquisition include payment of 4,666,667 shares of common stock of eVision, or about $3.5 million at a recent share price of 81 cents per share.

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  • The Quaker Funds
    • "This acquisition will add a new dimension to the company's broker/dealer related business which has traditionally focused on retail sales and corporate finance," said Fai H. Chan, president and chief executive officer of eVision. "This should enhance our asset-gathering abilities."

    After the acquisition, eVision would own approximately 60% of Quaker Funds, Inc. Quaker Funds shareholders will be able to sell their eVision stock back to eVision if the eVision stock does not trade at an average price of $3.00 per share for a period of time between one and two years after the closing. There are also provisions whereby the Quaker Funds shareholders may sell the remaining 40% ownership to eVision or buy back the 60% sold to eVision.

    Quaker is owned by Jeffry King, principal of Quaker Securities, Peter Waitneight, Quaker Funds, president, and David Dameron, vice president of marketing. "Quaker has one or two funds that are starting to shine," said Gary Cook, chief financial officer of eVision, "the performance really stands out," when asked about the fit between the two companies in choosing eVision's first entrant into the asset management market. One of the funds, the Quaker Aggressive Growth Fund managed by DG Capital Management, had a 60.25% return for the 52-week period ending July 29, 1999.

    The Quaker Funds also includes the Core Equity Fund managed by Geewax, Terker & Company, the Small Cap Value Fund managed by Aronson + Partners, the Fixed Income Fund managed by Fiduciary Asset Management and the Quaker Mid-Cap and Large-Cap Value Funds managed by Compu-Val Investments.


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