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NAYN (.05) Signs Definitive Agreement to Acquire Professional Satellite & Communications (ProSAT) With $40 Million Revenue
PrimeZone "PrimeZone "
SANTA CLARA, Calif., Feb. 6, 2007 (PRIME NEWSWIRE) -- Nayna Networks, Inc., (OTCBB:NAYN), a provider of next generation network solutions headquartered in Santa Clara, California, today announced it has entered into a definitive agreement to acquire privately-held Professional Satellite & Communications, LLC (ProSAT(tm)) headquartered in San Diego, California. ProSAT is a recognized supplier of residential broadband satellite solutions with about 125 employees. This acquisition is the latest step in Nayna's expansion into fast-growth high bandwidth markets. After the acquisition, Nayna expects to have about 175 employees globally including US and India. The company plans to expand its India operations significantly to provide customer retention and support for ProSAT operations.
Subject to final audit, ProSAT generated more than $40 million in revenues with over $3 million in net income for the year ending in 2006. Pursuant to the terms of the definitive agreement, subject to various standard closing conditions and approvals, Nayna will acquire all of ProSAT's outstanding membership interests in an all-stock transaction that is anticipated to close within 30 days. At closing, Nayna will issue 16 million shares of restricted Nayna stock to the members of ProSAT. In addition, 2 million of the shares to be issued at closing will be held in escrow for fifteen months to satisfy any indemnification claims by Nayna. Additionally 2 million shares will be issued in the form of stock options to current ProSAT employees after the formal close of this transaction.
ProSAT is a leading third party marketing and customer acquisition vehicle for DIRECTV(tm) and offers standard and High Definition Television equipment (HDTV), installation throughout the United States. Satellite TV services provided by DIRECTV including premium channel offerings. Equipment and installation include: standard and elliptical dish antennas, receivers, Digital Video Recorders (DVRs), set-top-boxes and sophisticated high definition (HD) equipment. The market demand for desirable HDTV quality offerings makes ProSAT a very competitive supplier in the market place.
"This is a win-win for both our companies, ProSAT is very strong in sales and customer relationships, while Nayna has a strong background in networking technology and engineering development," said Kory Madison, president and co-founder, ProSAT. "We are confident that together we will be able to aggressively follow-up on opportunities that maximize our joint value potential."
"We are excited about the synergies from both the companies," said Naveen Bisht, president and CEO, Nayna Networks. "From a geographical prospective, ProSAT has a USA focus that balances Nayna's traditionally international focus. From a sales cycle, ProSAT's shorter cycle residential focus balances Nayna's traditional longer cycle service provider focus. Combining the strengths of both the companies makes it very appealing for pursuing long-term growth opportunities while simultaneously providing enhanced short-term revenues."
About Professional Satellite & Communications, LLC
ProSAT was formed in 1997 and currently has its main facilities located at 5590 Morehouse Drive, San Diego, CA 92121 USA. ProSAT has established itself as a leading third party marketing and customer acquisition agent for DIRECTV. The company has leveraged its unique proprietary marketing formula and highly productive sales model to earn the distinction as a leading independent distribution partner for the marketing and sales of DIRECTV satellite programming. ProSAT is well positioned to benefit from the rapid growth of Direct Broadcast Satellite (DBS). More information is available at http://www.2getdtv.com/
About Nayna Networks, Inc.
Nayna Networks, Inc. delivers next generation network solutions including VoIP, IP based TV, RF based TV and high-speed Internet. More information is available at http://www.nayna.com/.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, among others, statements relating to the planned expansion of operations in India, the market for residential broadband satellite and home security solutions, the integration of ProSAT's service offerings into Nayna Networks, and the timeframe during which the merger is expected to close. Statements regarding future events are based on the parties' current expectations and are necessarily subject to associated risks related to, among other things, the potential impact on the business of ProSAT due to uncertainty about the merger, the retention of employees of ProSAT, the ability of Nayna to successfully integrate ProSAT services, technology and operations and to achieve planned synergies. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. For more information regarding Forward Looking Statements and related risks, see the "Risk Factors" section of Nayna's filings with the SEC. The company undertakes no obligation to revise or update any forward looking statements for any reason.
All products or services mentioned in this document are trademarks, service marks, registered trademarks or registered service marks of their respective owners.
CONTACT: Nayna Networks, Inc. Jim Connor, Marketing (408) 956-8000 x 831 jim*nayna.com
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Look at both of the companys. NAYN is a fully reporting otcbb and read the revs by the other company. This will touch .2 this week..IMO
Subject to final audit, ProSAT generated more than $40 million in revenues with over $3 million in net income for the year ending in 2006. Pursuant to the terms of the definitive agreement, subject to various standard closing conditions and approvals, Nayna will acquire all of ProSAT's outstanding membership interests in an all-stock transaction that is anticipated to close within 30 days. At closing, Nayna will issue 16 million shares of restricted Nayna stock to the members of ProSAT. In addition, 2 million of the shares to be issued at closing will be held in escrow for fifteen months to satisfy any indemnification claims by Nayna. Additionally 2 million shares will be issued in the form of stock options to current ProSAT employees after the formal close of this transaction.
Current Capital Change: shs decreased by 1 for 5.9 split Ex-Date: Record Date: Pay Date: 2004-12-17
Dividends:
Company Notes: Note=7-99 State of Incorporation changed from Wyoming to Nevada Formerly=Rescon Technology Corp. until 4-05 Note=12-31-04 company is in the development stage
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with 1700 dollars in the bank i wonder if they can pull it off? ( the aquisition )
Posts: 2503 | From: connecticut | Registered: Mar 2005
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posted
Had a massive dip, but beginning to move back up. According to the PR today the merger will be completed by the end of this month. I'm gonna try to call the companies today if I can get some time. If this line of the PR (Subject to final audit, ProSAT generated more than $40 million in revenues with over $3 million in net income for the year ending in 2006.) is proven to be true, this will trade much higher by the EOM...IMO. GLTA
COMPANY NEWS AND PRESS RELEASES FROM OTHER SOURCES:
Nayna Networks Appoints Dr. Won-Gil Choe to Its Board
Veteran Executive Strengthens Nayna's Board
SANTA CLARA, Calif., Feb 6, 2007 (*********wire via COMTEX) -- Nayna Networks, Inc., (OTCBB:NAYN), a provider of next generation network solutions headquartered in Santa Clara, California, U.S.A., today announced that its board of directors has appointed Dr. Won-Gil Choe to the board. "We are fortunate to augment our board with Dr. Won-Gil Choe, whose vast expertise and strong financial background will be a great asset to Nayna Networks," said Naveen Bisht, president and CEO, Nayna Networks. "I am delighted to welcome Dr. Choe to the Board, and am confident he will make strong and lasting contributions to Nayna's growth and long-term success."
Additional Bio Information
Won-Gil Choe, Ph.D, is the CEO/President of Stanford Venture Group, Inc., which he founded. The company is primarily involved among others in management of Asian firms in U.S. He also serves as the President of TTCM China, Inc. Prior to founding the Stanford Venture Group, Inc., he was the Chairman and CEO of GAN Semiconductor, Inc., receiving funding from Siemens of Germany and Dow Corning Corporation who absorbed the Company later. Previously, Dr. Choe served as the President and CEO of Compressent Corporation, Inc. (NASDAQ), Cofounder and CFO of Mass Microsystems, Inc. (NASDAQ), CFO & Vice President of TeleVideo Systems (NASDAQ), Executive VP and CFO of Vacu Blast Corporation (NASDAQ). He was also with Applied Materials, Memorex, Philip-Signetics and Fairchild Semiconductor in engineering and general management capacities. Dr. Choe received BSIE from Arizona State University, MSIE from Stanford University and Ph.D in Corporate Finance from California Western University.
About Nayna Networks, Inc.
Nayna Networks, Inc., delivers next generation network solutions. More information is available at http://www.nayna.com/.
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