AudioMonster Online Inc. (OTCBB:AMMQ) is pleased to announce that the company has entered into a share purchase agreement to acquire 100% of the outstanding shares of ADS Technologies Inc. of Tempe, Arizona.
The agreement calls for AudioMonster to pay total consideration of $14,000,000 of which AudioMonster shall pay $9,000,000 by issuance of a three-year promissory note to the Vendor.
ADS Technologies Inc. (ADST) is a manufacturer and international distributor of high-quality, high fidelity audio products for both the automotive aftermarket and the home. ADST’s three operating divisions are a/d/s, Orion and Precision Power. A/d/s, Orion and Precision Power are all leading car and home audio brands and have won a number of industry achievement awards. ADST provides financial, engineering, manufacturing and administrative support, for each if its brands, while maintaining marketing, sales and product development as independent functions within each brand. ADST’s primary manufacturing facility and offices are located in a state of the art 85,000 square foot facility in Tempe, Arizona.
A/d/s markets automotive loudspeakers and electronic products including amplifiers and signal processors for sale to customers seeking to upgrade originally installed automotive systems. For the home a/d/s markets several lines of a/d/s and Apogee branded loudspeakers.
Orion markets power amplifiers, signal processors, and loudspeakers to the automotive aftermarket targeting 18 to 35 year old consumers.
Precision Power markets high fidelity amplifiers, signal processors and loudspeakers that deliver audiophile quality sound in the mobile environment.
ADST (the “Company”) estimates net sales for the year ending January 2001 will be approximately $40,000,000 with an EBITDA of approximately $5,500,000. ADST has already achieved first quarter revenues of approximately $9,200,000 with an EBITDA of approximately $780,000. ADST is currently meeting its proforma budget and management believes that it is in a position to surpass its budgeted forecasts. Last year ADST achieved sales of $19,257,000 with an EBITDA of $1,406,000. ADST currently has current and long term assets of approximately $17,000,000.
AudioMonster Online Inc. President and CEO Greg Corcoran said, “The acquisition of ADST is a key milestone in the execution of our growth strategy. Also, having both high quality audio hardware and music allows us to cross-link our customer bases to create massive brand leverage. Our future Internet initiatives and current e-commerce technologies should allow us to grow both markets rapidly. Driving revenues and creating sustainable business models sets AudioMonster apart from first generation Internet audio companies, and allows us to build a broad based brand driven audio model which currently does not exist on the Internet.” Added Mr. Corcoran, “We are actively pursuing additional complementary acquisitions which will allow us to create an e-commerce based service and support dealer network to fill the large specialty audio hardware market currently not serviced by large retail vendors. In doing so we are confident that we can achieve our first year objective of $100,000,000 in revenues.”
AudioMonster Online Inc. is a leading edge audio company that is developing a global audio brand known as AudioMonster(TM). AudioMonster Online Inc. is a public company listed on the OTC BB in the United States under the symbol AMMQ. The company’s corporate information site is located at www.audiomonster.net.