AQUA AquaCell Technologies Signs Letter of Intent to Acquire Sky Electronics, Inc., a Leading OEM Distributor With Annual Revenues of $20 Million
RANCHO CUCAMONGA, CA -- (MARKET WIRE) -- January 17, 2007 -- AquaCell Technologies, Inc. ("AquaCell") (PINKSHEETS: AQUA) announces today that it has signed a letter of intent to acquire Sky Electronics, Inc. ("Sky") (www.skyelec.com). Sky's annual revenue is approaching $20 million, is profitable and has demonstrated 30% growth year over year. AquaCell will acquire Sky for $4.5 million in consideration consisting of cash and AquaCell common stock.
Sky is a distributor of OEM original products of network gear and server products from the world's leading manufacturers. Through its network of global sources Sky distributes new OEM original packaged products without franchise distribution costs, which provides Sky's customers with access to OEM products at a reduced cost as well as with same day shipping. As a result, Sky has significant margin opportunities and a large customer base.
"Sky has demonstrated its ability to separate itself as a nationwide leader in providing its customers with attractive pricing and delivery of innovative technologies in this rapidly growing market segment of OEM packaged products," said Kevin Spence, AquaCell President and Chief Financial Officer. "Solution providers are increasingly turning to alternative sources and specialty distributors which is making this market segment extremely attractive. Sky is poised to become a significant leader in this multi-billion market."
"Sky's future is focused on providing our Value Added Reseller customer base with superior pricing, service, and new OEM product solutions," said Dan Rickabus, CEO of Sky. "The acquisition of Sky by AquaCell will allow Sky's management team to focus solely on this goal and provide a terrific platform and opportunity to consolidate this fairly fragmented industry segment."
AquaCell had previously announced the signing of a letter of intent to acquire Citation Publishing, Inc., an internet publisher of government information of interest primarily to Environment, Health and Safety compliance professionals. "While in no way have we lessened our future interest in Citation," said Kevin Spence, "we will be concentrating our full-time efforts in the near-term in getting the Sky acquisition closed. Sky's size, profitability and compelling industry nature has completely re-focused our acquisition priorities," said Spence.
About Sky Electronics, Inc.
Sky is a non-franchised stocking distributor of OEM original products. Through its network of global sources and manufacturer's products, Sky provides its customers with new OEM original packaged products without franchise distribution costs, with greater flexibility in policies and procedures, and access to millions of products and same day shipping. Sky is recognized as the low cost distributor of new packaged products, without sacrificing quality, technology or on-time delivery.
About AquaCell Technologies, Inc.
AquaCell Technologies, Inc. is based in Rancho Cucamonga, CA. Historically, its AquaCell Media, Inc. subsidiary installed its patented self-filling Aquacell 1000 Bottled Water Cooler Systems free of charge into various locations. AquaCell's direction will now be focused on the acquisitions and growth of Sky and other similarly related businesses.
Safe Harbor. Statement Under the Private Securities Litigation Reform Act of 1995.
Certain statements in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. Forward-looking statements include, but are not limited to, statements about: our ability to continue relationships with customers; our ability to offer our products at competitive prices; and our ability to use the most current technology for our products.
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