To: LPasko (0 )
From: scouser Monday, Jan 11 1999 9:28AM ET
Reply # of 2355
news in full
LAS VEGAS--(BUSINESS WIRE)--Jan. 11, 1999--Betting, Inc. (OTC:BB: BETT) and eBet, Inc., (Nevada) have announced that they have signed a definitive agreement to merge the two companies.
Under the terms of the agreement, Betting, Inc. shareholders will own about 48 percent of the company, while eBet, Inc. (Nevada) shareholders will own about 52 percent.
"This merger brings together two outstanding organizations that share common values, have compatible strategies and demonstrated track records of achievement," said Mr. Hughes and Mr. Wexler in a joint statement. "The merger will significantly enhance shareholder value by enabling us to manage the combined assets of Betting Inc. and eBet Inc. to produce a higher return on capital than either company could achieve on a stand-alone basis."
"The merging of these two companies will deliver significant near-term synergies," they said. "This merger will enhance our ability to be an effective global competitor in an industry that will become more and more competitive. It allows us to manage our expanded, combined asset base to deliver increasing returns and growth to our shareholders while reducing our operating costs. It also allows us to continue delivering quality products to our customers at competitive prices into the future. We are confident that with the exceptional quality of eConnect's employees, we will succeed in meeting these objectives."
"The relative strengths of our two companies are highly complementary," they said. "When combined, they will provide better opportunities for both our shareholders and customers than those they would experience without this merger. It's a good match."
"While we expect to benefit from a reduction of costs, our real objective is to maximize growth and return on investment by successfully managing the existing assets of the two companies. They said, "Combining the proprietary technologies and management expertise of the two companies also will reinforce the selection of eConnect as the partner of choice, creating additional resource opportunities in the future."
In discussing the strategic fit of Betting, Inc. and eBet, Inc., Mr. Hughes said the two companies line up well with each other in almost every facet of the business. "eConnect should realize immediate benefits through sharing the proprietary technology and best practices of each company."
The merger is subject to shareholder and regulatory approval, as well as other customary conditions.
It is intended that the merger will qualify as a tax-free reorganization in the United States and that it will be accounted for on a "pooling of interests" basis.
--30--crd/sf
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