ProLink Solutions, a provider of Global Positioning Satellite ("GPS") golf- course-management systems and on-course advertising - announced it signed a letter of intent to acquire its largest distributor, European-based Elumina Iberica, and all of Elumina's operating subsidiaries.
Elumina is a one of the fastest-growing and most profitable businesses in the international golf GPS industry. As ProLink's distributor in Europe, the Middle East and Asia the past 18 months, Elumina has secured cart-mounted ProLink GPS installations at over 70 courses in these territories, as well as on-screen advertising contracts with Saab, Lexus, Bose and Citroën, among others. ProLink and Elumina are endorsed as the "Official GPS of The PGAs of Europe," and ProLink GPS is used at 2006 Ryder Cup host The K Club in Ireland, Valderrama Golf Club in Spain and other prestigious venues.
The Elumina acquisition is anticipated to close in the second quarter, although there can be no assurances that this transaction will close on this timeline or at all. The acquisition is subject to the signing of a definitive purchase agreement, audits for required reporting periods, completion of due diligence, and various regulatory and shareholder approvals.
The Founders of Elumina, Mark Smart and Kevin Clarke, have agreed to multi-year employment contracts to continue growing the Elumina/ProLink brand throughout Elumina's current distribution territories.
"The combination of the two businesses will add to ProLink's already explosive growth over $10 million in top line revenue on a proforma 2006 basis as well as over $3 million of EBITDA," says Lawrence D. Bain, c.e.o. of ProLink Solutions. "Elumina fills a gap in our global strategy as they are the market leader in their territory outpacing all of their competitor's sales combined by more than 10 to 1. ProLink will have an on-the-ground presence in the United Kingdom, Spain and France with the remainder of Europe and Asia covered by those offices. In 2007, Elumina will leverage their presence in new territories such as Australia, China, Italy and Germany. Elumina has the only material delivery system for on-course advertising and they have established an extremely valuable market for advertisers."
"This agreement gives ProLink access to an international platform of advertisers eager to reach the sought-after, affluent golf demographic through this remarkably effective medium," Smart says. "In the fourth quarter of 2006 alone we closed over $2 million of new advertising business to be delivered in 2007 and we are carrying a strong order book into 2007. We are thrilled with this arrangement and the expanded opportunities this combination presents."
The acquisition of Elumina will mark another milestone for ProLink Solutions. ProLink recently announced a $10.4 million equity investment and its acquisition of the ScoreCast Tournament Software ProLink's golf-course installations and advertising initiatives reach five continents and 13 countries.