ePals Acquires Newstogram(TM) Media Personalization Platform
(Press Release) HERNDON, VA, Aug 24, 2011 (MARKETWIRE via COMTEX)— ePals Corporation ("ePals"), an education technology company and leading safe social learning network ("SLN"), today announced its acquisition of the Newstogram(TM) platform and the DailyMe(R) service business from Nexify, Inc.
The acquisition provides ePals with a robust technology platform for personalization of quality media and learning applications, as well as enhancing its capability to match learners with each based on interests, across the ePals network of approximately 700,000 classrooms and millions of users in 200 countries. It will allow media publishers— including more than 20 major media companies that currently use the Newstogram platform— to create "educational" pages that highlight their content and add further breadth and depth to their offerings for family audiences.
The acquisition will also significantly extend ePals' management capabilities in the rapidly expanding online educational media industry, adding Eduardo Hauser and Neil Budde as President and EVP, respectively, of ePals' Media Division. Before founding Nexify, Hauser was EVP of Latin America for AOL and VP News and Information at Venevision. He is on the board of directors of NPR and the Knight Foundation's Journalism Advisory Board. Neil Budde previously was the founding editor and publisher of The Wall Street Journal Online, and VP and Editor in Chief of Yahoo! News, Finance and Sports.
"In acquiring the assets of Nexify and bringing seasoned media veterans like Eduardo and Neil on board, ePals has gained the technology and expertise to better serve our users and partners as we continue to build out a powerful education platform that is unique to the space," said Miles Gilburne, CEO of ePals. "We believe the dynamic personalization and matching capabilities that the Nexify platform has already delivered in general news publishing will have transformational qualities in educational publishing and adaptive learning, as users are matched with quality content and other learners to increase student, teacher and parent engagement and drive demonstrably better outcomes."
"Nexify's leading-edge technology powers advanced features for some of the world's leading content providers, and our team is excited to extend these capabilities into educational media, where personalized content delivery can yield meaningful and lasting results," said Mr. Hauser. "ePals Media will continue to provide media technology to Nexify partners, integrate matching and recommendations technology to the existing ePals products suite, and create a wealth of opportunities for ePals content partners in both the existing ePals network and across the Newstogram network."
Details of the Acquisition
The assets of Nexify, Inc. were acquired by ePals-Nexify, Inc., an indirect wholly-owned Delaware subsidiary of ePals. ePals satisfied payment of the asset purchase price by issuing to Nexify a total of 4,449,686 restricted common voting shares (the "Closing Shares") at a price of US$0.67 per share. In addition, ePals issued to Nexify warrants to acquire an additional 307,000 restricted voting common shares, at a price of US$0.67 per share. The warrants are exercisable, upon vesting, up to four years from the date of closing. The restricted voting common shares and the warrants issued by ePals, and any shares issued upon exercise of the warrants, are subject to a hold period of four months and one day from the date of closing in accordance with applicable Canadian securities laws and the policies of the TSX Venture Exchange. In addition, the Closing Shares are subject to further escrow provisions such that each quarter following the first anniversary of the closing 25% of such shares are released from escrow.
ePals has 67,469,950 voting common shares and 48,017,968 restricted voting common shares (inclusive of the Closing Shares) issued and outstanding. Each restricted voting common share is convertible into one voting common share of ePals.
About ePals Corporation ePals Corporation is an education technology company and leading safe social learning network (SLN). Focused on the K-12 market, ePals offers primary and secondary schools, teachers, students and parents worldwide a safe and secure platform for building educational communities, providing quality digital content and facilitating collaboration for effective 21st century learning. ePals' award-winning products include: the ePals Global Community(TM); SchoolMail(R)365, LearningSpace(R) and In2Books(R), a curriculum-based e-mentoring program that builds reading, writing and critical thinking skills. ePals customers and partners include International Baccalaureate, Microsoft Corporation, Dell, Inc., IBM Corp., National Geographic and leading school districts across the United States and globally. ePals connects approximately 700,000 classrooms and millions of teachers, students and parents in approximately 200 countries and territories. For the ePals Global Community, visit www.epals.com. Corporate information is available at www.corp.epals.com.
About Nexify Nexify is a technology company that is changing the way businesses present and monetize digital content. The company specializes in dynamic personalization for digital media and e-commerce. Its flagship service is Newstogram, a patented behavioral tracking and recommendation technology, which powers personalized news recommendations on hundreds of the world's leading information sites with more than 25 million monthly impressions.
Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) has in any way passed upon the merits of the Transaction and neither of the foregoing entities has in any way approved or disapproved of the contents of this press release.