iVoice Signs Letter of Intent to Purchase Profitable Company
MATAWAN, NJ - In accordance with its recently adopted acquisition strategy to take advantage of "non strategic relative" acquisition opportunities available because of low industry valuations and a weak IPO market, iVoice Inc., (OTCBB: IVOC) a developer of speech recognition technology, announced it has signed a Letter of Intent to purchase substantially all of the assets of a leading food equipment maintenance contractor located in New Jersey. The transaction calls for an undisclosed amount of cash, stock and notes, and is subject to the satisfaction of a number of conditions, including the completion of due diligence and the availability of adequate financing. The target company has been providing specialty beverage dispensing and refrigeration products in the New York metropolitan region since 1982. Historically profitable, the target company reported revenue in excess of $2 million in 2001. Key management has tentatively agreed to enter into employment contracts with iVoice, and will be responsible for guiding the company through a series of additional acquisitions in the same market segment. The institutional food equipment and refrigeration market is a multi-billion dollar industry. It is also highly fragmented, with many larger and smaller companies competing for market share. When completed, this transaction is expected to be the first in a series of transactions that iVoice will undertake to aggregate and roll-up profitable, cash flow positive companies in this market. By consolidating operations, implementing state of the art controls and systems, and centralizing purchasing, iVoice will be able to generate greater profits from these rolled-up entities than they would be capable of generating as a stand-alone company. The profits from these acquired companies will help support the cash needs of iVoice's core speech recognition and computerized telephony operations, and will significantly reduce the company's need to obtain external financing. iVoice expects to close on this acquisition by December 31, 2002.