Netgraphe and InfiniT merge operations
NETgraphe Inc WWW
Shares issued 34,691,500 Nov 15 close $2.05
Tue 16 Nov 99 News Release
Mr. Normand Drolet reports
Netgraphe Inc. and InfiniT Inc. have merged all their operations under the
name of Netgraphe Inc., forming the premier French-language Internet
editor. The transaction, announced today by Marc Copti, chairman of the
board, Normand Drolet, chief executive officer of Netgraphe Inc., and
Pierre Simon, president of InfiniT, represents an investment by InfiniT of
approximately $86-million in Netgraphe.
The transaction consists of a transfer of all of InfiniT's Internet assets,
including the Infinit.com portal, as well as its interests in various
agreements, partnerships and investments, for an approximate value of
$72.7-million, payable by the issuance of 41,531,004 shares of Netgraphe.
As well, InfiniT will acquire 6,714,286 newly issued Netgraphe shares for a
total cash consideration of $11.75-million, and will purchase an additional
one million shares from Netgraphe's founders. All the above mentioned
shares will be subscribed for and purchased at the price of $1.75 per
share. The transaction is subject to the usual conditions governing this
type of transaction including due diligence and shareholder and regulatory
approval. The transaction is expected to close by the end of December,
1999.
When the transaction is completed, Videotron Communications Inc. and TVA
Group Inc. will hold approximately 54 per cent of the share capital of
Netgraphe Inc., with the remaining shares held by company management and
the general public.
The new company will be the premier French-language Internet editor,
attracting over a million individual visitors each month, paying 8.5
million visits to its sites and consulting over 40 million pages.
"This merger makes Netgraphe the uncontested number one French-language
Internet editor," said Mr. Drolet. "With the integration of InfiniT's
products and services, Netgraphe substantially increases its
French-language market penetration and acquires the means to accelerate its
growth and become a force to be reckoned with in the development of
e-commerce, general information distribution and specialized reference
services."
This transaction makes it possible to unite and maximize the strengths and
reputations of two companies with significant achievements in the history
of Internet development, both in Quebec and in the French-speaking world.
For years now, La Toile du Quebec (www.toile.com) and InfiniT
(www.infiniT.com) have been important symbols of the French-language
presence in cyberspace.
"La Toile du Quebec and the InfiniT.com site have become unparalleled
reference tools in Quebec because our companies have developed unique
competence in their respective spheres of activity," said Mr. Simon.
"Thanks to our complementary products and the expertise we offer our
customers, we are an important hub for advertisers and merchants who want
to take advantage of the Internet's enormous potential."
La Toile and the other Netgraphe sites were planned and developed to meet
the specific yet ever-changing needs of their growing number of customers.
The InfiniT portal (www.infiniT.com) offers entertainment, real-time
information services and personal financial advice, in addition to
promoting easy Internet access and facilitating communications and
e-commerce.
The highly popular portal La Toile du Quebec (www.toile.com) allows
millions of Internet users to consult the content of some 45,000 referenced
sites. Netgraphe also operates three other highly acclaimed sites:
Multimedium (www.mmedium.com) is the largest French-language Webzine
specializing in information technologies enjoying an excellent
reputation in Europe and North America.
Megagiciel (www.megagiciel.com) is a directory of more than 6,000
ready-to-download freeware programs and is the largest French-language
site of its kind.
Economedia (www.economedia.com) is a leading French-language Webzine
in Quebec, specializing in economic and financial information.
Netgraphe plans to increase its partnerships with major companies in order
to serve its customers better and to make the best use of the resulting
synergies. Current partners of the new Netgraphe organization, including La
Presse, Musique Plus, Elle Quebec, Coup de Pouce and Le Point (France) will
benefit from increased visibility and market potential.
With a team of 75 experienced managers and professionals, Netgraphe will
rely on the support, creativity, business acumen and the strong networks of
its new partners, Videotron Communications Inc. and TVA Group.
With combined sales of over $4-million in the current financial year,
Netgraphe has at its disposal more than $14-million to pursue development
projects and accelerate its growth.
Additional information regarding projects and activities of the new
corporation will be available in the coming weeks.
Netgraphe (www.netgraphe.com) is the largest French-language Internet
editor in Canada, capitalizing on Internet business opportunities in Quebec
and in French-speaking countries worldwide. It is involved in content,
advertising and e-commerce as well as providing other services such as site
design, production and maintenance.
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