ITEX Corporation (OTC Bulletin Board: ITEX), The Membership Trading Community(SM), a leading marketplace for cashless business transactions in North America, has acquired the media trading system, Intagio Media Services client base, and advertising credit assets of Intagio Corporation of San Francisco, California.
The advertising and media sector is currently the largest component of transaction volume in the ITEX Marketplace. With the new Media Services, ITEX will expand its capability in this market sector.
The Media Services were acquired on August 1, 2008. The data migration into ITEX's web-based trading and payment systems platform has been completed. The acquired accounts will be managed from ITEX's corporate-owned office in Chicago, Illinois. Doug Hayner and Asimina Georgiou will join the ITEX team from Intagio, bringing with them valuable client relationship experience.
"We are pleased to greatly enhance the most active sector of our trading community with potentially high-volume media and hospitality clients," said Chairman and CEO Steven White. "With this acquisition, we now have the ability to offer a variety of new and exciting media opportunities directly to the ITEX Marketplace. Our media managers will offer enhanced media planning and execution services, expanding our clients' budgets by enabling them to fund part of their media plan through the trading of excess goods and services. In addition, we plan to use our expanded media base to register more member businesses in the hospitality, travel, and restaurant industries."
"This is a low-risk acquisition with great upside potential," White continued. "Our expansion into media trading services compliments our current business model and we believe it provides ITEX a significant growth opportunity."
Terms of the Transaction
The purchase price of approximately $750,000 included the following:
-- A cash payment of $ 51,468;
-- A $687,500 secured promissory note financed by the seller at 8% APR for 12 months;
-- Assumption of certain liabilities.
The acquired assets include the following:
-- $4,000,000 in media inventory;
-- 300 client relationships;
-- Historical transactional data and associated accounts;
-- Accounts receivable.
ITEX's cash and cash equivalents exceeded $1.0 million as of July 31, 2008. -- ITEX Corporation
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