Galaxy Enterprises Inc. Signs Letter of Intent to Acquire Impact Media LLC
OREM, Utah--(BUSINESS WIRE)--March 4, 1999--Galaxy Enterprises Inc. (OTC BB:GLXY - news), an established e-commerce provider, operator of the popular 1,700-storefront Galaxy Mall and MatchSite search engine, Thursday announced that it has signed a letter of intent to acquire the business of Impact Media LLC, also located in Orem.
The acquisition will be accounted for as a purchase of assets. Impact Media is a marketing product development company specializing in electronic multimedia brochures, custom-designed CDs, and other Internet products that Galaxy plans to cross-market to its customer base and prospects from other channels. Impact posted more than $3 million in sales in 1998.
Terms of the letter of intent provide for Galaxy's purchase of substantially all the assets and assumption of certain liabilities of Impact Media. Exact terms of the purchase were not disclosed.
Closing of the acquisition is subject to the completion of a due diligence review, and the preparation and approval of a final agreement by the company's board of directors. Galaxy expects to consummate the transaction on or about March 15, 1999.
Impact Media (Impact Media (http://www.impact-media.net) first began selling its products in January 1998, and after its first year of operation reported revenues in excess of $3 million, while operating profitably.
Management anticipates its sales to exceed $7 million in 1999, which does not include additional revenue expected from the cross-marketing of each company's products to the other. Product integration and cross selling is only part of the post-acquisition plan.
In addition to its own electronic brochure and CD marketing products, Impact markets two of Galaxy's products under private labels.
Impact is a reseller for Galaxy's Banner Source (http://www.bannersource.com), which provides banner advertising to the Internet community, and also markets Galaxy Center, under the name Impact Avenue (http://www.impactavenue.com), which is a software program that allows Internet users to create their own commercial Web sites and then publish the sites to the Internet.
Commenting on the announcement, John J. Poelman, Galaxy's chief executive officer and president, said: "Over the past year, we have observed Impact's phenomenal growth from the sidelines and have been impressed with their success in marketing two of our products under private label agreements."
"We then concluded that Impact would not only be a strategic fit in terms of expanding our products and marketing channels, but would also contribute substantially to revenue and earnings growth at Galaxy for 1999 and future years."
"As we currently contact more than 80,000 new small businesses, entrepreneurs and select individuals monthly, we have developed a substantial untapped market for products other than Galaxy's."
"After careful evaluation, we have determined that our current customer base and targeted prospects are well suited for the Impact Media products. This is one of the tremendous upsides in our joining the two companies," added Poelman.
Rob Greene, executive managing member of Impact, said: "We are very pleased with the impending marriage of the two companies as there are strong synergies between us which will enable each company to truly capitalize on the acquisition."
"In fact, we believe that the combination of our cutting edge technology products and Galaxy's Internet presence will create a true twenty-first century organization -- a company that can market effectively to ever-changing consumer demographics and create commerce on and off the Web."
About Impact Media
Impact Media, a developer of two cutting-edge electronic marketing products for small and large businesses alike, is located south of Salt Lake City. Impact's products include electronic multimedia brochures, and custom-designed CDs, similar to the Shape CD(TM).
About Galaxy Enterprises
Galaxy Enterprises is an e-solutions provider, trainer and facilitator of Internet-based businesses, an operator of an electronic mall, an e-commerce Web site builder and a broad-based Web search engine. Galaxy Mall Inc. (http://www.galaxymall.com), a wholly owned subsidiary, is one of the fastest growing malls on the Internet with approximately 1,700 storefronts and 10 million hits monthly.
Galaxy Center (http://www.galaxycenter.com), a Web-based, Web site builder program, allows individuals and business owners to create and maintain their own fully functional e-commerce Web sites. MatchSite (http://www.matchsite.com) is Galaxy's new revolutionary broad-based search engine that queries other major search engines simultaneously, which eliminates the need for multiple queries.
Banner Source (http://www.bannersource.com), is a clearing house for Web banner advertisements, which currently has access to a network of more than 20,000 sites and markets in excess of 1 million dynamic impressions over the Internet daily.
This news release includes forward-looking statements, including statements regarding the potential purchase of Impact Media, and the revenues available to Galaxy resulting therefrom, and Galaxy's product development and marketing plans, which are subject to change. The actual results may differ materially from those described in any forward-looking statement. There can be no assurance that the proposed purchase of Impact Media will be consummated, and that any benefits from the purchase will increase the revenues or profitability of Galaxy. Important factors that may cause actual results to differ are set forth in Galaxy's periodic filings with the U.S.
Securities and Exchange Commission including its Form 10.
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