ITEX
Corporation Acquires Certain Assets Of Cleveland-Based ATX
ITEX
Corporation (OTCBB:ITEX) has entered into an agreement to acquire
certain assets of 26 year industry leader, ATX of Cleveland, Ohio.
The all cash transaction will close Friday, February 1, with the 400
member client list and assets transferred to the ITEX office in
Solon...20 miles from Cleveland.
ATX was founded
in 1982 by Tom McDowell, who is also the founder, three term
President and the Executive Director of the National Association of
Trade Exchanges (NATE). This acquisition establishes ITEX as the
dominate trading community in the Cleveland area market, with more
than 700 local members, able to trade with 24,000 other ITEX
business members throughout the United States and Canada.
�This
transaction hits the sweet spot for us, as there is minimal
integration and overhead to deal with,� said ITEX Chairman and CEO
Steven White. �With this acquisition, we will add one local customer
service representative to our existing staff of three, to manage the
increased member base. Being able to operate a local exchange of
this size without adding additional overhead will be immediately
accretive to revenue and cash flow.�
Tom McDowell,
President of ATX (The Barter Company) explained, �Selling something
you�ve built for 26 years is never easy. However, knowing Steve and
the kind of person he is, the way he takes care of his people and
his customers, has really helped to make this decision easier for
me.
�I really got
to know Steve about ten years ago when he was president of NATE;
today the barter industry is better and stronger because of him. I
know that my clients, who have taken care of me for the last 26
years, will be well taken care of by Steve and his staff.�
Terms of the
transaction:
�
All cash, payable in
full on February 1, 2008. Financial details not disclosed.
�
Accounts receivable.
�
ITEX will utilize
existing cash to fund the purchase.
The acquired assets include the following:
�
400+ member accounts.
�
Contracts between ATX,
The Barter Company, and specified clients including the client
relationships.
�
Historical
transactional data and associated accounts.
�
The
www.atx-barter.com web site.
For more
information go to
www.itex.com.
