On January 14, 2005, THK closed on the acquisition of MarketSmart Advertising, Inc., Rightstuff, Inc., and Checkup Marketing, Inc. The acquisition is expected to be accretive to earnings.
biz.yahoo.com
CGI Holding Corporation Acquires MarketSmart Advertising
Friday January 14, 11:38 am ET
Deal Merges World's Largest Search Engine Marketing Firm with Major N.C. Full-Service Ad Agency
LAKE BLUFF, Ill.--(BUSINESS WIRE)--Jan. 14, 2005--CGI Holding Corp. (OTCBB:CGIH - News; the "Company") today announced that it has closed its previously announced acquisition of MarketSmart Advertising, Inc., Rightstuff, Inc. d/b/a Bright Idea Studio, and Checkup Marketing, Inc. (the "MarketSmart Companies"), for $3 million plus 1 million shares of the Company's restricted common stock. The Company has also issued warrants to purchase an aggregate of 260,000 shares of the Company's restricted common stock to the stockholders and employees of the MarketSmart Companies. The Company expects the merger to be immediately accretive to its earnings.
Based in Raleigh, N.C., the MarketSmart Companies provide world-class advertising, public relations, marketing, branding and shopping evaluation services. The founding partners of the MarketSmart Companies -- Greg Cox, Lewis Finch III and Steven Thanhauser -- will continue to lead the businesses following the merger.
CGI Holding Corp., based in Lake Bluff, Ill. (see www.cgiholding.com) also owns WebSourced, Inc., Morrisville, N.C., recognized as the world's largest search engine marketing firm, and Cherish, Inc., Clearwater, Fla., a leading Internet dating company.
"We see this as a powerful, synergistic move designed to combine our strengths as an award-winning ad agency with a world leader in online services," said Steven Thanhauser, CEO of MarketSmart. "The Internet has transformed the way businesses compete for market share worldwide. This move reflects that change and positions us to help our clients develop marketing programs and ad campaigns that will help them maximize their marketing opportunities. WebSourced is a powerhouse and together we see great things on the near horizon."
Steven "Pat" Martin, CEO of WebSourced, also described the merger as a positive move for the companies involved. "Combining MarketSmart's traditional advertising and marketing talents with WebSourced's search engine marketing acumen will allow us to provide a truly integrated service," Martin said. "With this move, we see WebSourced and MarketSmart emerging as a world leader in both interactive marketing and traditional advertising."
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