DirectView Completes Acquisition of
Two Privately Held Texas-Based Security and Surveillance Companies
with Combined Fiscal 2016 Revenue of Approximately $5.3
Million
Company assumes full legal
ownership of Video Surveillance, LLC and ApexCCTV, LLC
NEW YORK, NY -- April 27, 2017 -- InvestorsHub NewsWire --
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 completed the acquisition of Video Surveillance, LLC
and ApexCCTV, LLC (the "Acquisition Companies"), two Texas-based
video security and surveillance companies operated and solely owned
by Mark D. Harris. Based on the unaudited financial statements for
fiscal 2016 the combined revenue of the Acquisition Companies is
approximately $5.3 million.
Under the terms of the securities purchase agreement (the"SPA"),
Directview acquired all of the issued and outstanding equity
interests of each of the Acquisition Companies for a minimum of
approximately $1.9 million in cash to be paid approximately six
months from the date of acquisition. Upon the successful completion
of a two year audit of the Acquisition Companies, in accordance
with U.S. GAAP accounting standards for the fiscal years ended 2016
and 2015, DirectView will be obligated to pay an additional amount
ranging from $2,000 up to $500,000 based on the positive average
annual cash flow achieved in those two years. DirectView has
received a non-binding term sheet to finance the payments as well
as to fuel future growth of the combined companies. The Company
also intends to explore a number of potential financing sources to
achieve the best long term results for the Company and its
shareholders. For a more detailed description of the SPA, please
review our current report on Form 8-K filed with the Securities and
Exchange Commission on April 26, 2017.
As part of the transaction, Mark D. Harris has entered into a
three year employment agreement with DirectView where he will serve
as President of the Acquisition Companies. Mr. Harris is a
technology services veteran with over 25 years experience and a
proven track record of building profitable revenue growth. He
served for 19 years at Intervoice (formerly traded as NASDAQ:
INTV), a world leader in delivering natural, intuitive ways for
people to interact, transact, and communicate through technology.
As Senior Vice President of Americas Operations and Global Services
at Intervoice, he led a team which was responsible for pioneering
the execution of a new Enterprise Hosted Solutions business to
support advanced self service applications and intelligent
transactions. Beginning in 2008, upon the acquisition of Intervoice
by Convergys Corporation (NYSE: CVG),
he served as Senior Vice President of Global Technology Services at
Convergys Corporation through 2014. He brings a wealth of
experience in M&A integration, business development and
strategic planning to the Directview management team.
Roger Ralston, CEO and Chairman of DirectView, stated, "The
acquisition of these companies is a very exciting transformational
event for DirectvVew as we position for current and future growth.
Mr. Harris has built two businesses that in less than three years,
are generating substantial revenue and, more importantly, positive
cash flow. He also has a wealth of technology management experience
that will be invaluable for DirectView as we execute our strategic
growth plan. With his expertise in establishing a nationwide market
presence through direct and online sales and our ability to tailor
customized solutions in the marketplace, I believe we have set the
stage to achieve significant organic sales growth in the coming
years. Additionally, this acquisition gives us the critical mass to
opportunistically roll-up other security and surveillance companies
in order to further accelerate the growth of our business and build
significant long term value for our shareholders."
Mark D. Harris added, I am excited to now be a part of the
DirectView team as we work to become a force in our industry by
creating a very attractive roll-up platform. Through this
combination, all of our companies will benefit from increased
bandwidth, greater expertise and more wide ranging sales
opportunities. I look forward to implementing the proper business
strategies to build our business, both organically, and through
prudent acquisitions in order to provide the best solutions in the
market for our growing customer base."
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 www.DirectView.com and connect with us on Twitter,
LinkedIn, Facebook, and Google+.
Contact:
DirectView Holdings, Inc.
Roger Ralston
+1-212-858-9100 EXT. 111
www.DirectView.com
IR@DirectView.com
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.
The Company is unable to make any assurances that it will receive
financing, or if financing is available, that such financing will
be on terms acceptable to the Company.