CDKX Elbit Limited Acquires Vflash
SHEFAYIM, Israel, June 19 /PRNewswire/ -- Elbit Ltd. (Nasdaq: ELBTF - news; the ``Company'') announced it has executed an agreement to acquire the business and assets of ValueFlash.com, Inc. (``Vflash'') for a purchase price of $3.5 million. The Company has also assumed approximately $2.75 million of Vflash liabilities out of the purchase price, the sum of $2.25 million was paid to Vflash in cash and $1.25 million was deposited in escrow to secure representations made by Vflash and its controlling shareholder, CDKnet.com, Inc. (``CDK'') (OTC Bulletin Board: CDKX - news). Of the escrowed amount, $500,000 will be released to Vflash after 9 months, $250,000 after 12 months and an additional $500,000 after 18 months.
Vflash engages in direct marketing over the Internet and has developed a proprietary, non-intrusive, personalized, e-messaging technology known as ``vflash messenger.'' This vflash messenger provides a new marketing channel enabling customers of Vflash to deliver, directly to their consumers' desktops, personalized data based on their predefined preferences and interests. Key customers include NBC, Ford, Blockbuster and Coca Cola. Vflash has also formed strategic alliances with JWT, a WPP company, and DDB Ventures, an Omnicom company. In order to develop its business outside the United States, Vflash enters into joint ventures with local partners to whom it licenses its technology in consideration for annual license fees. Joint venture affiliates have already been established in Japan and Singapore.
As part of the transaction, in addition to the acquisition of Vflash's technology rights, a license agreement has been entered into with CDK for the continued use of CDK's convergent multimedia technology integrating audio, video and Internet connectivity on a standard compact disc that is designed to increase traffic to a company's web site.
Mr. Yigal Baruchi, Elbit's president and CEO, commented, ``The acquisition of Vflash's business puts Elbit in a position closer to major customers and key players to enable the Company to leverage its assets in the emerging Digital Marketing Solutions business. The Company is looking forward to offering its customers integrated digital marketing solutions and complementary technologies in which it is involved, such as cellular value-added solutions, mobile commerce solutions, natural-language operated applications and vflash messenger.''
About Elbit Limited
Elbit creates value by developing added value services for tomorrow's e-business market. Company growth is based on strategic investments. Elbit develops e-business solutions by incubating technology start-ups, providing them with comprehensive management and strategic marketing capabilities. The following are several of its key investments: Contop specializes in wireless remote monitoring and control applications based on its proprietary messaging technology. Cellenium develops, markets and operates m-commerce patent-pending technologies and solutions, enabling all cellular subscribers to securely use their existing handsets for everyday payments. Dealigence is developing patent-pending technology for corporate commerce sites and electronic marketplaces that will allow traders to better match and negotiate their transactions by taking into account a large number of parameters and by preference matching. ICC provides outsourced procurement management and logistics services over Internet and intranet communications networks, based on a unique system developed and integrated by ICC.
|starkey|NET is developing a complete solution to enable a person to operate computerized software applications in the new e-business era using natural language, personal customized assistants personified in real-time 3D animated characters and dialogue generating software. Textology utilizes technology that will enable
organizations to manage diverse unstructured information. Its products will provide an integrated platform for automatic text categorization, natural language search and data retrieval and high-quality personalization. CellAct provides universal mobile messaging connectivity to content providers who want to distribute content and
interactive applications to a variety of customers and communities. Cell Data has developed a modem card enabling Internet connection from laptop computers over networks such as CDMA. In addition, Elbit has a shareholding (12.3%) in Partner, the first cellular operator in Israel using GSM technology.
Forward-looking statements in this release with respect to the Company's business, financial condition and results of operations are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements, including, but not limited to, product demand, pricing,
market acceptance, changing economic conditions, risks in product and technology development, the effect of the Company's accounting policies as well as certain other risk factors which are detailed from time to time in the Company's SEC filing.
SOURCE: Elbit Ltd. |
