Enhanced Services Company Inc. said that it has completed the acquisition of the assets of Zulu-tek Inc., in a transaction valued at approximately $30 million in convertible and redeemable preferred shares of Enhanced.
The convertible preferred shares of Enhanced Services issued to Zulu-tek will be converted to common shares and distributed to Zulu’s shareholders promptly after the stockholders’ meeting and regulatory approval and registration, the company said. After the conversion of the preferred shares, Enhanced will have approximately 15,500,000 common shares outstanding.
Zulu-tek is the outfit that acquired SOFTBANK Interactive Marketing, prompting a lawsuit by former execs against SOFTBANK’s parent companies claiming they essentially ran the company into the ground. Zulu-tek continues to operate the ad network under the new name.
“This acquisition, combined with the pending acquisition of eCommerce Inc., will provide a unique combination of companies that will focus on fulfilling a significant need in the Internet market place: a quality ‘one-stop’ solution for companies that want to generate commerce on the Internet, said Roger Mincheff, Enhanced Services’ president, in a statement. “Currently, companies are realizing that in order to remain competitive in this environment, they have to effectively combine technology with e-commerce and interactive advertising: we will provide all three. In support of this strategy, we are reporting that Enhanced Services and Zulu-tek combined gross sales for July reached $1.46 million.”
Enhanced also said it has selected Sitrick & Company as its investor relations firm.