Oxford Media, Inc. (OTCBB: OXMI)
Oxford Media Inc. (OTCBB: OXMI), is the leading developer of digital Video-On-Demand guest services for the Hotel Industry.
With its announced planned acquisition of the SVI Systems, Inc. Hotels Business Unit, Oxford becomes the # 1 provider of Video-On-Demand (VOD) services to the under-served small and mid-sized hotel and motel category.
As a result of the acquisition, Oxford Media gains many benefits:
– OXMI inherits a substantial and well established base of recurring revenue. Based on its 2005 audited results, SVI records over $11 million in annual recurring revenue from content sales to its client hotels.
– The combination of the two business units will have an immediate and significant opportunity for Oxford to up-sell its next generation VOD platform to the existing SVI analog-tape based customers. This potential client base totals more than 1,500 of the 1,900 hotels that SVI currently serves.
– With the upgrades comes the potential of converting and tuning the television to the barker channel when the system is turned on. This enhancement should promote added impulse rentals by hotel guests across the expanded OXMI installed base.
– OXMI gains an increase in operating efficiencies as a result of economies of scale derived from serving a larger installed customer base coupled with the blending of lower operating costs and logistics at SVI’s Peoria, IL facility.
Commenting on the acquisition, Lew Jaffe, CEO of Oxford Media, stated, “Acquiring SVI will dramatically increase our current revenues and provide a substantial opportunity to leverage Oxford Media’s VOD technology, its business model and expanding dealer network. The transaction will accelerate Oxford Media’s organic growth.
http://biz.yahoo.com/prnews/060606/latu038.html?.v=57
This proposed acquisition makes great sense for OXMI.
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