BOS Announces the Acquisition of Summit Radio Corp. for a Total Consideration of up to $5.5 Million
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The Acquisition Provides BOS With a Strong Presence in the US Market and Creates a Stepping Stone for new US Offerings of BOS RFID Solutions, Services and Products
With the Addition of Summit, BOS's Revenues are Expected to Substantially Increase in the Year 2008
RISHON LEZION, Israel, October 31/ -- B.O.S. Better Online Solutions Ltd., announced today that it has entered into a definitive share purchase agreement for the purchase of all of the issued and outstanding share capital of Summit Radio Corp. ("Summit"). The two sellers shall continue to hold their management positions with Summit. The closing of the transaction is subject to certain closing conditions.
Shmuel Koren, President and CEO of BOS, commented: "I see this acquisition as an important addition to BOS's international activities, especially in the United States. We believe that Summit's business is highly synergetic with the business of our supply-chain division. Summit's reputation, built over 50 years of operations, allows us to expand our supply-chain sales to major international aviation and aerospace manufacturers, as well as offer our RFID and enterprise software solutions to the US market."
The consideration for Summit's shares will be: (i) $4.1 million in cash;
(ii) 360,000 unregistered BOS ordinary shares (with incidental registration rights), amounting to approximately 3.7% of the current outstanding shares of the Company; and (iii) a contingent cash payment of up to $500,000, payable on the basis of Summit's financial results in 2008 and 2009.
Edouard Cukierman, Chairman of the BOS Board, said: "We are very pleased with this acquisition, which implements the Company's growth strategy and creates a significant market opportunity for BOS."
Andrew Levi, Summit's CEO, added: "We are very excited to become part of the BOS group. We intend to leverage our existing business relationships to increase BOS's market share in the United States. In addition, together with BOS's supply-chain division, we will be able to enhance our supply-chain offerings to existing and new customers. We are looking forward to a successful partnership."
About BOS
B.O.S Better Online Solutions Ltd. ("BOS") was established in 1990.
BOS's operations consist of: (i) Software Solutions, providing specialized enterprise software, including IBM System i middleware, data and license management, mobile connectivity and RFID solutions, and (ii) Supply Chain products, reselling electronic systems and components for security, aerospace, networking and RFID.
BOS is traded on NASDAQ and on the Tel-Aviv Stock Exchange. Our website is www.boscorporate.com.
About Summit
Summit, a New Jersey private company, with over 50 years of operations, is a supply chain solutions provider of electronic components to major international aviation and aerospace industries.
Source: B.O.S. Better Online Solutions Ltd.
For further information please contact: B.O.S Better Online Solutions Ltd., Mr. Zvi Rabin, +972-50-560-0140, zvi@kwan.co.il or Mr. Eyal Cohen, CFO, +972-3-954-1000, eyalc@boscom.com
