Galaxy Enterprises Inc., operator of the 1,700-storefront Galaxy Mall and the MatchSite search engine, has signed a
letter of intent to acquire marketing company Impact Media LLC.
Financial specifics were not disclosed. Both companies are based in Orem, UT.
Impact Media is a marketing product development company specializing in
electronic multimedia brochures, custom-designed CDs and other Internet
products that Galaxy plans to cross-market to its customer base and prospects
from other channels. Impact posted more than $3 million in sales in 1999,
Galaxy said.
Impact management anticipates its sales to exceed $7 million in 1999, which
does not include additional revenue expected from the cross-marketing of each
company’s products to the other. In addition to its own electronic brochure
and CD marketing products, Impact markets two of Galaxy’s products under
private labels.
Impact is a reseller for Galaxy’s Banner Source, which provides banner
advertising to the Internet community, and also markets Galaxy Center, under
the name Impact Avenue, which is a software program that allows Internet users
to create their own commercial Web sites and then publish the sites to the
Internet.
“Over the past year, we have observed Impact’s phenomenal growth from the
sidelines
and have been impressed with their success in marketing two of our products
under private label agreements,” said John J. Poelman, Galaxy’s chief
executive officer and president. “We then concluded that Impact would not only
be a strategic fit in terms of expanding our products and marketing channels,
but would also contribute substantially to revenue and earnings growth at
Galaxy.”