Yesterday, leading podcast network, Wizzard Software, announced that it has acquired Digital Entertainment International Ltd. ("FAB"), a leading distributor of digital entertainment media throughout Asia. FAB offers intelligent kiosks at 10,000 locations throughout China where consumers can purchase and download movies, music, television shows, and other forms of digital entertainment.
According to the definitive proxy statement filed by Wizzard with the SEC, dated June 15, 2012, FAB generated revenues of $55.5 million and net income of $11.5 million in fiscal 2010; in fiscal 2011, FAB generated $70.8 million in revenue and $14.7 million in net income. Wizzard expects the acquisition to boost its 2012 adjusted earnings per share and significantly affect its fourth quarter results.
"We are very pleased to have completed the acquisition of FAB and to begin this new chapter in Wizzard's international development," said Chris Spencer, Wizzard CEO. "Throughout this entire process we have been impressed with the expertise and dedication of FAB's management team and associates and we expect this combination to create substantial value for our shareholders."
He continued, "We are enthusiastic about combining Wizzard's digital media distribution platform with FAB's digital media distribution kiosk network in China, the world's fastest-growing market. We believe this partnership creates one of the world's premier digital entertainment media companies at a time when mobile computing is driving digital media consumption to the forefront of the entertainment industry."
According to the acquisition agreement, Wizzard Software Corp. will change its name to FAB Universal Corp. and its ticker symbol will change to NYSE MKT:FU, effective October 9th, 2012.
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