Online System Services Inc. announced it
entered into an agreement to acquire Durand Communications Inc. of Santa
Barbara, CA in a stock deal valued at $9.9 million.
Terms of the agreement call for Denver-based Online System Services to
issue 1,003,000 shares of restricted common stock valued at approximately
$9.9 million in
return for all of the outstanding shares of privately held Durand. The
acquisition is subject to approval by shareholders of Online System Services
and other contingencies.
Online System Services develops a turnkey product and service package that
puts broadband operators in the high-speed Internet service and local Web
content business. Durand provides an integrated suite of products and services
for building and supporting online communities and electronic commerce.
“Durand Communications is an ideal fit for Online System Services because
it will
strengthen our leadership position in the high-speed access marketplace and
enhance our ability to provide critical local content and online community
development to broadband operators who are offering high-speed Internet access
to their subscribers,” said Steve Adams, president and CEO of Online System
Services.
Adams noted that Durand’s expertise in online education and business training
was especially attractive to Online System Services. “We believe that markets
for education and business training are among the most exciting growth
opportunities for online communications,” he said.
“Durand is a clear leader in this area. Its Pangaea Network and ownership
of the Electronic University Network, along with the company’s wealth of
technical and marketing talent, all are important factors in our decision
to make this acquisition.”
Durand’s principal offerings include CommunityWare, an advanced set of
tools, applications, and services for building virtual communities on the
Internet; and Pangaea Network, a distance learning
network serving colleges, schools, associations, and businesses.
