ITEX Acquires Media Services Business
ITEX Corporation (OTCBB: ITEX), a leading marketplace for cashless
business transactions in North America, has acquired the media
trading system Intagio Media Services, with its client base and
advertising credit assets, of Intagio Corporation of San Francisco.
The advertising and media sector is currently the largest component
of transaction volume in the ITEX Marketplace. With the new media
services, ITEX intends to expand its capability in this market
sector.
The Intagio Services were procured on August 1, 2008, and the data
migration into ITEX�s web-based trading and payment systems platform
has been completed. The acquired accounts will be managed from
ITEX�s corporate-owned office in Chicago (IL). Doug Hayner and
Asimina Georgiou will join the ITEX team from Intagio, bringing with
them valuable client relationship experience.
�We are pleased to greatly enhance the most active sector of our
trading community with potentially high-volume media and hospitality
clients,� said Chairman/CEO Steven White. �With this acquisition, we
now have the ability to offer a variety of new and exciting media
opportunities directly to the ITEX Marketplace.
�Our media managers will offer enhanced media planning and execution
services, expanding our clients� budgets by enabling them to
fund part of their media plan through the trading of excess goods
and services. In addition, we plan to use our expanded media base to
register more member businesses in the hospitality, travel, and
restaurant industries.
�This is a low-risk acquisition with great upside potential,� White
pointed out. �Our expansion into media trading services compliments
our current business model and we believe it provides ITEX a
significant growth opportunity.�
Transaction Terms
The purchase price of approximately $750,000 included the following:
-
A cash payment of $ 51,468;
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A $687,500 secured promissory note financed by the seller at 8%
APR for 12 months;
-
Assumption of certain liabilities.
The acquired assets include the following:
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$4,000,000 in media inventory;
-
300 client relationships;
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Historical transactional data and associated accounts;
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Accounts receivable.
ITEX's cash and cash equivalents exceeded $1.0 million as of July
31, 2008.
For more information on ITEX visit
www.itex.com.
