TWO ACQUISITIONS ANNOUNCED THIS MORNING
LAKE BLUFF, Ill.--(BUSINESS WIRE)--Feb. 22, 2005--CGI Holding Corporation (OTCBB: CGIH - News; the "Company") today announced that the Company has acquired Ozona Online Network, Inc. ("Ozline"), a provider of a comprehensive scope of online services including start to finish web design, custom web based applications, database systems, managed and shared hosting solutions, e-commerce, and high-speed business Internet access (see www.ozline.net). The Company estimates that Ozline will add approximately $300,000 per year in pre-tax earnings to the Company, and expects the merger to be immediately accretive to its earnings.
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The purchase price was $300,000 in cash plus 75,358 shares of the Company's restricted common stock. The Company has also issued warrants to purchase an aggregate of 60,000 shares of the Company's restricted common stock at $5.30 per share to the stockholders of Ozline.
Founded in 1997 and based in Clearwater, FL, Ozline has a satisfied client list that reads like a Who's Who of innovative companies including Canon, Komatsu USA, Dale Carnegie, Quantum Technology, and other clients such as General Electric, Ford Motor Company, and Marriott International through Ozline's Evigna Digital Catalog product. Rick Anderson, the founder of Ozline, will continue to lead the business following the merger.
Rick Anderson, the CEO of Ozline, explaining the rationale behind the merger, said, "Combining the technology and application development solutions of Ozline with the proven marketing expertise of WebSourced and MarketSmart Advertising, will allow us to provide the solution to any client's needs. With our combined services, there really isn't anything that we cannot offer a web-based client."
Gerard M. Jacobs, the Company's CEO, stated, "After the problems our online dating business encountered last September caused by multiple hurricanes, and in light of the continuing growth we are experiencing, we became determined to strengthen our company's in-house technology expertise in several areas. Ozline is a key piece of that solution for us, and we are fortunate to have Rick Anderson as a new partner to help us continue to grow CGI."
"Driving the decision to acquire Ozline was the ongoing need for technology and hosting services that our businesses and our clients continually require," adds Scott Mitchell, CEO of the Company's Cherish subsidiary. "Ozline offers the technical expertise and Internet services that will make us more effective at realizing the growth that our subsidiaries and our clients have planned."
Steven "Pat" Martin, the CEO of the Company's WebSourced subsidiary, added, "Ozline's application development and hosting services will allow WebSourced to continue its drive to offer complete business solutions for its clients."
LAKE BLUFF, Ill.--(BUSINESS WIRE)--Feb. 22, 2005--CGI Holding Corporation (OTCBB:CGIH - News; the "Company") today announced that the Company has acquired privately-held Personals Plus, Inc. ("Personals Plus"), the owner of several online dating and relationship websites. The acquisition is expected to significantly expand CGI's customer base in the area and to provide synergies between the websites that the combined companies will offer. The Company estimates that Personals Plus will add approximately $1 million per year in pre-tax earnings to the Company, and expects the merger to be immediately accretive to its earnings.
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The purchase price was $2,262,500 in cash plus 426,244 shares of the Company's restricted common stock. The Company has also issued warrants to purchase an aggregate of 60,000 shares of the Company's restricted common stock at $5.30 per share to the stockholder of Personals Plus.
Based in Apollo Beach, FL, Personals Plus has grown steadily since its inception, by providing lifestyle-oriented web services focused on online personals and social networking. Paul Widisky, the founder of Personals Plus, will continue to lead the business following the merger. Personals Plus will become a subsidiary of the Company's Cherish, Inc. subsidiary.
Gerard M. Jacobs, the Company's CEO, stated, "Personals Plus nicely expands our existing portfolio of profitable online dating services. We look forward to having Paul Widisky as one of our partners in continuing to build CGI."
Scott Mitchell, the CEO of Cherish, Inc., the Company's online dating businesses, added, "Personals Plus is an exciting addition to the world-class lineup of online dating and personal relationship websites that we are building at CGI. We see immense opportunity with the combining of Cherish's services with those of Personals Plus."
Paul Widisky, President and CEO of Personals Plus, said of the merger, "We are excited to enter this truly beneficial partnership. Not only will we be able to continue to grow, but we will also be in a position to utilize the marketing expertise of WebSourced and MarketSmart Advertising."
