On February 21, 2005, THK closed on the acquisition of Personals Plus, Inc., another acquisition expected to be accretive to earnings.
biz.yahoo.com
CGI Holding Corporation Acquires Personals Plus
Tuesday February 22, 7:00 am ET
Accretive Acquisition Strengthens Company's Growing Portfolio of Online Dating Properties
LAKE BLUFF, Ill.--(BUSINESS WIRE)--Feb. 22, 2005--CGI Holding Corporation (OTCBB:CGIH - News; the "Company") today announced that the Company has acquired privately-held Personals Plus, Inc. ("Personals Plus"), the owner of several online dating and relationship websites. The acquisition is expected to significantly expand CGI's customer base in the area and to provide synergies between the websites that the combined companies will offer. The Company estimates that Personals Plus will add approximately $1 million per year in pre-tax earnings to the Company, and expects the merger to be immediately accretive to its earnings.
The purchase price was $2,262,500 in cash plus 426,244 shares of the Company's restricted common stock. The Company has also issued warrants to purchase an aggregate of 60,000 shares of the Company's restricted common stock at $5.30 per share to the stockholder of Personals Plus.
Based in Apollo Beach, FL, Personals Plus has grown steadily since its inception, by providing lifestyle-oriented web services focused on online personals and social networking. Paul Widisky, the founder of Personals Plus, will continue to lead the business following the merger. Personals Plus will become a subsidiary of the Company's Cherish, Inc. subsidiary.
Gerard M. Jacobs, the Company's CEO, stated, "Personals Plus nicely expands our existing portfolio of profitable online dating services. We look forward to having Paul Widisky as one of our partners in continuing to build CGI."
Scott Mitchell, the CEO of Cherish, Inc., the Company's online dating businesses, added, "Personals Plus is an exciting addition to the world-class lineup of online dating and personal relationship websites that we are building at CGI. We see immense opportunity with the combining of Cherish's services with those of Personals Plus."
Paul Widisky, President and CEO of Personals Plus, said of the merger, "We are excited to enter this truly beneficial partnership. Not only will we be able to continue to grow, but we will also be in a position to utilize the marketing expertise of WebSourced and MarketSmart Advertising."
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