NEW YORK, February 14, 2017 /PRNewswire/ --
The target company is well established and profitable in 2016 with unaudited revenues in excess of $5.3 million
DirectView Holdings, Inc. (DIRV) ("DirectView" or the "Company"), a company focused on ownership and management of leading video and security technology companies, today announced that it has entered into a nonbinding letter of intent (LOI) to potentially acquire 100% of the business assets of a Texas based security and surveillance company (the "Target Company") for a combination of $2 million in cash, debt and stock. DirectView is currently conducting due diligence and has entered into preliminary discussions with several potential funding sources to arrange the financing necessary to facilitate the transaction. The Target Company's business achieved Non-GAAP unaudited revenues of $5.3 million in 2016 and was operationally profitable.
DirectView believes there are numerous benefits to the potential acquisition including an expanded customer base consisting of many well known local and national companies. In addition to its customer base, the Target Company also maintains a significant web presence that the Company believes is complimentary to and can potentially leverage DirectView's existing security and surveilence business. The Company believes the addition of these assets will have the potential to result in a significant increase in revenues, improved margins through larger scale and multiple channels for future revenue expansion. DirectView plans to use this potential transaction, if completed, as a model to begin a security and surveilence industry roll up strategy. DirectView can provide no assurances that it will acquire the Target Company or that such acquisition will be integrated into DirectView's business operations successfully.
Roger Ralston, CEO and Chairman of DirectView, stated, "We are excited to have entered into this LOI and begin the work necessary to complete this important acquisition. We believe there is a significant opportunity to embark on a roll up strategy in the security and survelience industry and we see this potential acquisition as an important first step forward for Directview in acheiving that long term goal. We look forward to reaching a definitive agreement to add the experienced management and financial strength that comes with this acquisition, as we work to build significant long term value for our shareholders."
About DirectView Holdings, Inc.
DirectView Holdings, Inc., together with its subsidiaries, provides video surveillance solutions and teleconferencing products and services to businesses and organizations. The company operates in two divisions, Security (Video Surveillance) and Video Conferencing. The Security division offers technologies in surveillance systems providing onsite and remote video and audio surveillance, digital video recording, and services. It also sells and installs surveillance systems; and sells maintenance agreements. The company sells its products and services in the United States and internationally through direct sales force, referrals, and its Websites. The Video Conferencing division offers teleconferencing products and services that enable clients to conduct remote meetings by linking participants in geographically dispersed locations. It is involved in the sale of conferencing services based upon usage, the sale and installation of video equipment, and the sale of maintenance agreements. This division primarily provides conferencing products and services to numerous organizations ranging from law firms, banks, high tech companies and government organizations. For more information visit our website at http://www.DirectView.com and connect with us on Twitter, LinkedIn, Facebook, and Google+.
Cautionary Statement Regarding Forward Looking Statements
Forward Looking Statements: This press release contains forward-looking statements that involve a number of risks and uncertainties, including statements regarding the outlook of the Company's business and results of operations. By nature, these risks and uncertainties could cause actual results to differ materially from those indicated. Generally speaking, any statements using terms such as "will," "expect," "anticipate," or "may," or which otherwise predict or address future results or events, are likely to contain forward-looking statements. It is important to note that actual results may differ materially from what is indicated in any forward-looking statement. Readers should consider any forward-looking statements in light of factors that could cause actual results to vary. These factors are described in our filings with the SEC, and readers should refer to those filings, including Risk Factors described in those filings, in connection with any forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE DirectView Holdings, Inc.