Onstream Media Acquires Certain Assets And Operations Of Intella2
POMPANO BEACH, Fla., Dec. 3, 2012 /PRNewswire/ -- Onstream Media Corporation (OTCQB: ONSM), a leading online service provider of live and on-demand corporate audio and web communications, virtual event technology, and social media marketing, today announced that on Friday, November 30, it acquired certain assets and operations of Intella2 Inc., a San Diego-based communications company. The acquisition brings Onstream a list of over 2,500 customers as well as software licenses, equipment, network infrastructure, and a recurring revenue stream. The services acquired from Intella2 include a host of complementary offerings, including audio conferencing, web conferencing, text messaging, and voicemail services.
The Intella2 assets and operations were purchased by Onstream Conferencing Corporation, a wholly owned subsidiary of Onstream Media and will be managed by Onstream's Infinite Conferencing division, which specializes in audio and web conferencing. Onstream will embark on a marketing campaign to cross sell its services to Intella2's list of over 2,500 customers. Additionally, Onstream's customers will benefit from the extended list of bundled offerings from the Intella2 acquisition.
"Based on Intella2's low operating costs and high gross margins, we expect that the added revenue from the acquired operations will translate into improved operating results for Onstream in fiscal 2013 and beyond," said Randy Selman, President and CEO of Onstream Media.
Paul Cohen, President and CEO of Intella2, remarked, "Over the last decade, we have built a solid customer list, providing small and medium-sized enterprises with a range of high-quality telecom and internet-based communications. We believe that we are providing Onstream with a suite of services that can now be profitably cross-marketed with the Onstream and Infinite offerings."The revenues of the acquired operations for the trailing twelve months as of August 31, 2012 were approximately $1.4 million, including free conferencing business revenues of approximately $300,000. The total purchase price was approximately $1.1 million of which Onstream paid 65% at closing and which was financed primarily by new debt. The 35% balance, plus an additional earn out of up to $200,000, will be paid based on the acquired assets and operations meeting or exceeding certain revenue targets over the next year.
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