USA Digital Purchases Computer Hardware/Network Integration Company
TAMPA, Fla.--(BUSINESS WIRE)--June 5, 1999--USA Digital, Inc. (BB: UDIG), announced today that it has signed a definitive agreement to purchase all of the issued and outstanding stock in DSA Computers, Inc. (DSA.), a Sunrise-Florida based computer hardware/network integration company that has been in business since 1991. During its 1998 fiscal year, DSA generated nearly $1.2 million in operating revenues with gross profit margins in excess of 25%. Through June 30 of the current year DSA's revenues have increased nearly 20% to $720,000, and its gross profit margins are still in excess of 25%. The transaction is scheduled to close on Friday July 9.
"DSA is our first computer hardware/network integration acquisition," stated Mark D. Cobb, President of USA Digital. "This acquisition will enable the Company to provide hardware and network solutions to all its clients in a dependable and cost efficient manner. We are acquiring a company that has been effectively servicing our desired demographic group for nearly eight years, while earning a tremendous reputation for reliability and excellence. We intend to utilize DSA's management team to assist us in providing this same superior service to all of our clients in the Nine State BellSouth region."
USA Digital intends to achieve critical mass through the aggressive acquisition of Internet Service Providers (ISP), Interconnect Companies, Switchless Resellers and Computer Integrators, while simultaneously developing an Internet infrastructure and Super Pop for the co-location of independent ISPs and Inter-Exchange Carriers to allow for the integration of High-Speed Internet access and Internet Telephony.
USA Digital, Inc. has recently been formed to take advantage of the opportunities that have been created by the explosion of the Internet and the Information Super Highway, along with the recent deregulation of the telecommunication's industry by the Telecommunications Act of 1996 (the ''Act''). The Company's objective is to become a $100 million company in two years. The Company plans to accomplish this objective by aggressively acquiring local business solution vendors that have previously built a loyal customer base of small to medium businesses, and providing an entire line of Convergent Communications products and services with the emphasis on Internet Solutions to these newly acquired customers. Initially, USA Digital will concentrate its activities in the Nine State BellSouth region.
Certain information and statements included in this release constitute "forward-looking statements'' within the meaning of the Federal Private Securities Litigation reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the results, performance or achievements of the company to be materially different from any future results, performance, or achievements expressed or implied in such forward-looking statements.
CONTACT:
Mark D. Cobb
President
(813) 230-9100
KEYWORD: FLORIDA
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