Projectavision Announces Acquisition of Vidikron;
Signs Agreement to Purchase Leading Home Theater Company
NEW YORK, Jan. 21 /PRNewswire/ -- In a strategic move to broaden its home theater product line in a market expected to double in unit sales within five years, Projectavision, Inc. (Nasdaq: PJTV) announced today that it has signed a definitive agreement to purchase substantially all of the assets of Vidikron Industries, S.p.A., including its U.S. subsidiary, Vidikron of America.
Vidikron, a privately held company founded 18 years ago and headquartered in Milan, Italy, is a leading manufacturer and marketer of high-end projection systems for the home theater consumer and commercial markets and serves customers in over 30 countries worldwide.
Under terms of the agreement, which is subject to financing and completion of due-diligence, Projectavision made an initial payment upon the execution of the agreement and expects to close the transaction in approximately 90 days. Projectavision has retained the investment banking firm Hambro America Securities, Inc. to advise it with respect to negotiating the acquisition of Vidikron and securing the necessary financing. Projectavision noted that it intends to file a current report on Form 8-K that will outline the economic
terms and conditions of the acquisition.
Vidikron, which posted sales of approximately $17 million and was
profitable in 1997, is a recognized industry leader in the design, assembly and marketing of high-end projection video display products based on Cathode Ray Tube (CRT) and Liquid Crystal Display (LCD) technologies. In addition, Vidikron recently introduced a new product line based on the Digital Light Processing(TM)(DLP(TM)) technology developed by Texas Instruments, which is the same technology that is used by Projectavision in its Digital Home
Theater(TM). Texas Instruments has chosen Projectavision and Vidikron as its two key alliance partners to introduce the revolutionary DLP technology into the consumer marketplace.
"We believe that the acquisition of Vidikron, a consistently profitable company, represents a major step forward in achieving our long-term strategy of becoming the premier developer, marketer and licenser of high-end video display and home theater products," stated Martin Holleran, Chief Executive Officer of Projectavision. "Essentially, it will enable us to expand and differentiate our strong product base with a highly regarded, worldwide leader in an industry that is projected to reach $10 billion in revenues over the
next five years. It will also provide instant access to an stablished, worldwide sales and distribution network. In addition, the combination of the senior management teams of our two companies further strengthens the strategic value of this acquisition which we believe will ultimately result in a significant increase in shareholder value." The Vidikron management team will remain with the company after completion of the proposed acquisition.
Flavio Peralda, Chairman and President of Vidikron stated that, "We believe there is an opportunity for substantial continued growth in the high-end front and rear projection markets, and that Vidikron-brand products offer a design flair and level of innovation that sophisticated consumer and business users around the world recognize and appreciate. We believe that our company can best seize the opportunities that lie ahead through this transaction with Projectavision."
Projectavision's Digital Home Theater is the first 100% digital projection unit that combines a large front or rear screen VGA or SVGA computer display, a 60-inch rear projection television and removable front projectors that projects beyond 240" diagonally. It is the first consumer product to utilize Texas Instruments' 2-chip Digital Light Processing(TM) (DLP(TM)) technology that produces a crisp, clicker free image with no distortion or loss of brightness when viewed from almost any angle. DLP employs an advanced microchip that allows both video and computer-generated images to be reflected
with their full color spectrum intact.
Projectavision is a New York-based company in the business of developing and marketing technological innovations in the electronic display and information industries. Projectavision has developed patented and patent pending technologies which significantly enhance projected television and computer images.
The foregoing press release contains forward-looking statements, including statements regarding, among other things, the completion of a definitive acquisition based upon due diligence and securing the necessary financing, timing and direction of the Company's growth, and the introduction of certain of the Company's products. These forward-looking statements are based largely on the Company's expectations and subject to a number of risks and uncertainties, certain of which are beyond the Company's control. Actual results could differ materially from these forward-looking statements as a
result of a variety of factors including, among others, the ability of the Company to secure the necessary financing to effect the Vidikron acquisition, satisfactory completion of due diligence with respect the Vidikron acquisition, the production schedules of unaffiliated third parties, availability of component parts, consumer acceptance of the Company's product and prevailing economic conditions as they affect the consumer electronics industry in general. In light of these risks and uncertainties there can be
no assurance that the forward-looking statements contained in this press release will in fact transpire or prove to be accurate.
SOURCE Projectavision, Inc.
CONTACT: Executive Contact: Martin J. Holleran, CEO of
Projectavision, 212-971-3000; or Media Contact: Alex Stanton of
Stanton-Crenshaw, 212-727-3300, or alex@stantoncrenshaw.com; or
Institutional Investor Relations: Frank Hawkins of Hawk
Associates, 305-852-2383, or Fhawk@hawkassociates.com, or
hawkassociates.com; or Investor Relations: Tony Schor
of Investor Awareness, 847-945-2222, or investawar@aol.com, all
for Projectavision
Web Site: hawkassociates.com |
