New Paradigm Acquires Westchester Ad Agency Assets
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New Paradigm in New York City said it has acquired certain assets, including all the client relationships, from Schoen Kapelus & Cipriano Advertising of Harrison, NY.
The principals of the company (Milton Kapelus and Rocco Cipriano) are joining the New Paradigm team to continue the development of client relationships. The acquisition was made through a wholly-owned subsidiary of New Paradigm to be known as SKC Advertising Inc.
The acquisition price is 250,000 shares of common stock of New Paradigm Software Corp., plus a payout over the next three years related to the revenue of SKC Advertising--to be paid half in New Paradigm common stock and half in cash.
In addition the subsidiary assumed certain liabilities, including media- related accounts payable and approximately $55,000 of debt. Paradigm, traded over the counter, closed at $0.31.
"The established client relationships of agencies should increase the opportunity for us to deliver profitable value-added technically advanced services like Internet applications."
New Paradigm creates Internet applications and Web sites; clients include Novartis Animal Health USA, National Multiple Sclerosis Society, and the Association of the Bar of the City of New York.