FCCN announces an acquisition that will double its subscriber base. It would be nice to know the terms of the transaction.
biz.yahoo.com
Tuesday July 27, 8:24 am Eastern Time
Company Press Release
Frontline Communications to Acquire Sovernet, an Internet Services
Company With 15,000 Subscribers
Acquisition Will Double Frontline's Subscriber Base and Expand Geographic Reach
PEARL RIVER, New York--(BUSINESS WIRE)--July 27, 1999-- Frontline Communications Corp. (Nasdaq:FCCN - news) and Sovernet, Inc., www.sover.net, an Internet services company with approximately 15,000 subscribers, today announced that they have entered into a binding purchase agreement for the sale of the Vermont-based company to Frontline.
The purchase terms outlined in the agreement are for a combination of unregistered common stock and cash. For its twelve-month period ending June 1999, unaudited financial results show Sovernet had revenues of approximately $3.6 million.
''This acquisition marks a real milestone for Frontline,'' said Frontline CEO Stephen J. Cole-Hatchard. ''Sovernet is a strong brand, reaching New England and parts of Canada, which also has an extremely successful track record. With the addition of its subscriber base, almost half of which are small business customers, Frontline has entered into a new league in the Internet industry.''
''Frontline was a natural choice,'' said Sovernet President Erik Leo. ''With an operation that is geographically complementary and a business focus that melds well with Sovernet's, Frontline brings many important new elements to the table, including excellent customer service and exciting access, Web development, and Ecommerce solutions products. It's a good fit to achieve common long-term goals.''
It was also announced that the due diligence process is close to completion and that the closing of the acquisition is expected sometime in September.
About Frontline
Founded in 1995, Frontline Communications Corporation provides Effortless Ecommerce and Internet Access to small businesses nationwide. Frontline is poised to be the nation's leading provider of high-quality Internet services (Access, Development and Presence) through its three Ecommerce brands: Frontline.net, www.frontline.net, WOWFactor.com, and Channel iShop.com, each serving important geographic, demographic and vertical small business market segments. Frontline's focus on specific small businesses and their unique needs helps those customers utilize the Internet more easily to achieve an advantage over their competitors. With the acquisition of WebPrime, a member of IBM's Web Integrator Initiative, Frontline now provides its clients with full Web design, development and Ecommerce solutions. Frontline is headquartered in Pearl River, New York, and is traded on the Nasdaq Small Cap Market.
The statements which are not historical facts contained in this press release are forward looking statements that involve risks and uncertainties, including but not limited to, changes in the market for Internet services, regulatory and technological changes, economic factors, increased competition, and the nature of supplier of customer arrangements which become available to the Company in the future. The Company's actual results may differ materially from the results discussed in any forward-looking statement.
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Contact:
Frontline Communications Corp.
Corporate Communications
Rick Byrne, 914/623-8553 X180
Fax: 914/623-8669
Rbyrne@fcc.net
or
Investor Relations
Lee Skoblow, 914/623-8553 X185
Fax: 914/623-8669
Investinfo@fcc.net |
