Enhanced Services To Acquire Zulu-tek Assets in $30 Million Deal
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Enhanced Services Company Inc. said it executed a binding agreement to acquire all of the assets of Zulu-tek Inc., owner of the former SOFTBANK Interactive Marketing operation, in a deal valued at $30 million.
Enhanced Services, a maker of peripheral products for portable computers, will pay about $24.2 million in stock and assume $6 million in debt, valuing the transaction at about 58 cents for each share of Zulu-Tek.
The combined company will provide a 'one-stop shopping' environment for companies seeking to establish, maintain and improve their transactional business and advertising presence on the Internet, ESVS said.
Most of the SOFTBANK execs bailed when Zulu-tek acquired the company (including the entire European staff), and there is still a $200 million lawsuit kicking around over the matter. Some of the founders and former execs sued SOFTBANK's corporate parents, Softbank Holdings and its subsidiary, Ziff-Davis, saying they abused their control of SIM by mismanaging the company's business and selling to an inappropriate buyer.
"As a result of the acquisition, Enhanced Services establishes itself as a leading provider of interactive advertising and e-commerce solutions on the Internet. We will compete in three dynamic sectors of the rapidly growing Web marketplace: e-commerce, technology and interactive advertising, which gives us a significant competitive edge," said Roger Mincheff, Enhanced Services president, in a statement.