New Frontier Media, Inc. (NASDAQ: NOOF - news), which operates adult entertainment cable/satellite networks, finalized the terms of its acquisition of IGALLERY, INC., (''IGI''), an e-commerce, technology and adult Internet distribution company. IGI's creative marketing and traffic generation programs have resulted in more than 15 million unique visitors per month to their in-house websites.
The terms of the acquisition call for the issuance of six million shares of NOOF common stock, of which one million shares are to be held in escrow, subject to IGI earning $6 million before income tax and depreciation expenses, for the 12 months ending December 31, 1999. IGI's revenues and EBIDTA for the 12 months ending March 31, 1999 are expected to exceed $21 million and $3 million, respectively. Based on NOOF's March 23, 1999 closing price, the acquisition is valued at approximately $27 million, or just under ten times the estimated trailing EBIDTA.
New Frontier Media, Inc. found IGI to be an ideal acquisition based on their e-commerce, marketing and content distribution expertise. IGI officials arrived at the same conclusion after reviewing the scope of New Frontier Media's current and future distribution potential, as well as its significant content library and output deals with more than 15 internationally recognized, high-quality adult studios.
New Frontier Media, Inc. (NASDAQ: NOOF - news) is a diversified entertainment company primarily engaged in the electronic distribution of adult entertainment via subscription and Pay-Per-View television, and the Internet.
Some statements in this release include forward-looking commentary subject to risks and uncertainties, including those risks detailed in the Company's Securities and Exchange Commission filings. These risks could cause actual results to differ materially from those set forth or implied by any forward-looking statements. |
