Today before the opening bell, Consorteum Holdings, Inc. announced that it has entered into a non-binding Letter of Intent to acquire Tenzing Interactive. If finalized, Tenzing Interactive will be a wholly owned subsidiary of Consorteum Inc. According to the terms of the agreement, the purchase price is to be payable over a 2-year period and made up of a combination of cash and shares in Consorteum Holdings Inc.
The proposed acquisition is part of Consorteum Holdings’ intent to expand both local and international opportunities. Tenzing Interactive will bring with it new value added partners, allowing Consorteum to achieve its long term business strategy, increase revenues of current initiatives and add new opportunities to generate additional income. Combining Tenzing Interactive’s approach to enhancing its clients’ brand recognition with Consorteum Holdings’ ability to add transaction based initiatives will increase revenues and value to all parties, including the client.
Craig Fielding, CEO of Consorteum Holdings Inc. stated, “The market for our solutions is expanding rapidly. This new collaboration will allow us to significantly grow our current business opportunities while bringing on contracts in new areas. The ability to expand existing client agreements and take advantage of new international opportunities puts both Consorteum Holdings and Tenzing Interactive in a strong position to increase revenues and shareholder value.”
If a definitive agreement cannot be concluded, then terms of the agreement provide the option for a joint venture between both companies. Consequently, current and new clients will benefit from Tenzing’s branding solutions and Consorteum’s transaction solutions. Revenues to the joint venture would accordingly be shared.
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