Enhanced Services Company Inc. said that it has completed the acquisition of the assets of Zulu-tek Inc., in a transaction valued at approximately $30 million in convertible and redeemable preferred shares of Enhanced.
The convertible preferred shares of Enhanced Services issued to Zulu-tek will
be converted to common shares and distributed to Zulu’s shareholders promptly
after the stockholders’ meeting and regulatory approval and registration, the
company said. After the conversion of the preferred shares, Enhanced will have
approximately 15,500,000 common shares outstanding.
Zulu-tek is the outfit that acquired SOFTBANK Interactive Marketing, prompting
a lawsuit by former execs against SOFTBANK’s parent companies claiming they
essentially ran the company into the ground. Zulu-tek continues to operate the
ad network under the new name.
“This acquisition, combined with the pending acquisition of eCommerce Inc., will
provide a unique combination of companies that will focus on fulfilling a
significant need in the Internet market place: a quality ‘one-stop’ solution
for companies that want to generate commerce on the Internet, said Roger Mincheff, Enhanced Services’ president, in a statement.
“Currently, companies are realizing that in order to remain competitive in this
environment, they have to effectively combine technology with e-commerce and
interactive advertising: we will provide all three. In support of this
strategy, we are reporting that Enhanced Services and Zulu-tek combined gross
sales for July reached $1.46 million.”
Enhanced also said it has selected Sitrick & Company as its investor relations
firm.