(SRGE NEWS) Surge Components Agrees to Acquire Global Datatel/e-Hola
DEER PARK, N.Y., Dec 2, 1999 (BUSINESS WIRE) --
It is anticipated that effective upon closing
Global Datatel (OTCBB: GDIS) Note do not miss read this SRGE is acquiring and will continue trade.
Will cease trading
Surge Components, Inc. (NASDAQ: SRGE;BSE:SRG) announced today that it
has agreed to purchase all of the assets of Global Datatel (OTCBB:
GDIS) including its wholly owned subsidiary eHola.com. and all other
subsidiaries.
Upon completion, Global Datatel/eHola ("Global") shall operate as a
wholly owned subsidiary of the parent corporation, Surge Components,
Inc., ("Surge") and Global Datatel will cease trading, announced
Richard Baker, President and CEO of Global. Ira Levy, president of
Surge Components, Inc, made the announcement and Equilink, LLC acted as
the investment banker on the transaction.
Global (www.globaldatatel.com) is a leader in Latin America in medium
to large Web integration projects. Global is a First Tier IBM Business
Partner, Microsoft Solution provider, Lotus Premier Team Provider and a
distributor for JBA International E.R.P. Company. Global also
distributes hardware for Compaq, Dell, Hewlett-Packard and Cisco
Systems.
Mr. Levy noted that Global's web integration business is on the verge
of very substantial growth. I have seen the growth of Global, reviewed
their plans for enormous growth ahead; and believe Latin America offers
tremendous potential for those companies positioned to capture this
market. My board and I believe in Global's plan and were impressed with
their track record. Naturally, we see that Global can, through its many
business partners and clients, complement and expand our current
business," Mr. Ira Levy. further stated, "that while the rapid growth
of Global impressed Surge, Global offers our shareholders much in
addition to this exciting solid Web integration business. The
acquisition of the assets of Global Datatel, Inc. brings with it,
eHola.com, a leading South American Internet Service Portal with
Spanish and Portuguese language Web content.. Our board is very proud
to present this opportunity to our shareholders."
As reported to Surge, eHola.com, a wholly owned subsidiary of Global.,
is an Internet Service Portal well as Content Provider specializing in
the Latin American marketplace. As previously announced on August 11,
1999, eHOLA.com signed a collaboration agreement with IBM whereby
eHola.com, effective Oct. 1, 1999, is pre-loaded in all of IBM Aptiva's
shipped to Latin America. The multilingual portal recently unveiled its
new Web page (www.ehola.com) which features 18 different categories of
information in both Spanish and Portuguese. Its Twelve category anchors
include IBM, Wall Street Journal, Interactivo, eduverse, Latino TV,
elBUZZ, VCOM.com, AutoWorld, Arte Realidad, WWF (World Wrestling
Federation), LatinMD.com and EFE News Agency. eHola provides a central
starting point for finding a variety of information on the Internet. In
addition to eHola.com, the subsidiary's properties include
eTiendas.com, an online shopping channel, and eSubasta.com, the
multilingual auction site.
eHOLA.com offers integrated Internet access in English, Spanish and
Portuguese to individuals and businesses in North, Central and South
America. eHOLA.com Online Service Network (www.ehola.com) provides
individual and corporate dial-up and dedicated Internet access in over
350 cities throughout Argentina, Bolivia, Brazil, Chile, Colombia,
Ecuador, El Salvador, Guatemala, Mexico, Paraguay, Peru, United States,
Uraguay, and Venezuela.
Richard Baker stated "Surge will provide Global with unique resources
that will assist it in marketing eHOLA.com in the U.S. Surge offers us
a sourcing advantage for high quality, low cost Internet appliances,
such as set-top boxes, and personal computers. Fourth quarter plans
include rolling out a National marketing campaign in the U.S. for a
free personal computer or Internet Set Top Box, which will include
eHOLA's Internet access and multi-lingual portal services". The initial
campaign is targeted at the estimated 10 million Latin American
households in the United States. Global, in order to capture the Latin
U.S. market, needs to maintain its integrity of a "Latin" portal; and
still be prepared to offer what has become the industry norm of today
by offering free computers or set-top boxes, bundled with the Internet
access services for a low monthly payment."
Global's primary focus will remain on Latin America for both Global's
web integration and eHOLA businesses, "Surge arms Global with an
infrastructure to target the very appealing U.S. Latin market." Surge's
current executives, including Ira Levy and Steve Lubman, shall continue
to head the U. S. parent.
Surge Components, Inc. is a supplier of high quality electronic
components. Its product mix includes a large selection of
high-performance discrete semiconductors, capacitors and discrete
components. Its factories are ISO 9000 quality certified. Surge sells
directly to manufacturers of such products as computer modems, video
boards, power supplies, audio and many others. Surge announced its
revenues for the third quarter ended August 31, 1999 net sales were $3,
341,149 which reflected a 60% increase over the same period last year.
Its net income for the third quarter ending August 31, 1999 was
$143,263 compared with a loss of $100,992 for the same period last
year.
Terms of the Acquisition
The terms were not announced and are expected to be announced upon
closing and completion of final audits and due diligence.This
acquisition replaces the previously announced merger between the
parties.
This press release contains forward-looking statements regarding
Surge's and Globe's business strategies and future plans of operations.
Forward-looking statements involve known and unknown risks and
uncertainties. The Companies' risks and uncertainties include, their
ability to complete the merger, the merged entity's ability to combine
and work together and grow the companies, periodic downturns in their
industries, dependence on the Internet, timely acceptance of new
products and intense price competition in their industries. These and
other important factors, including those mentioned in various filings
with the Securities and Exchange Commission made periodically by the
Companies (available at www.sec.gov.), may cause the actual results and
performance to differ materially from the future results expressed in
or implied by such forward-looking statements. The forward-looking
statements contained in this press release speak only as of the date
hereof and the Companies disclaim any obligation to provide public
updates, revisions or amendments to any forward-looking statements made
herein to reflect changes in the Companies' expectations or future
events.
Copyright (C) 1999 Business Wire. All rights reserved.
Distributed via COMTEX.
-0-
CONTACT: Surge Components, Inc.
Ira Levy, 516/595-1818 |
