Global Edition

 

ProLink Solutions to acquire Elumina Iberica

12.30am 22nd January 2007 - Corporate

ProLink Solutions, the wholly-owned subsidiary of ProLink Holdings Corp. and the world’s leading provider of Global Positioning Satellite (“GPS”) golf-course-management systems and on-course advertising, has 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 Citroen, 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.

Mark Smart, managing director of Elumina said, “This is an excellent deal for both Elumina and ProLink. The combined business covers five continents, 13 countries and approximately 50,000 screens. We are the only GPS company capable of delivering major international brands to over 17m golfers, primarily AB men, anywhere in the world through their sporting passion of golf at a time when they are most receptive”.

“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,” said Lawrence D. Bain, CEO of ProLink Solutions. “The strong system and advertising pipeline in 2007 makes the Elumina acquisition exciting for ProLink and its partners, as the company continues to gain even more traction in the international landscape.”

Mr. Bain concluded, “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 integrated global ad program will financially benefit participating courses with ProLink GPS systems.”

“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,” Mr. Smart continued. “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.

Kevin Clarke adds, “The new ProLink-Elumina partnership solidifies the companies‘ position as the globally dominant player in the golf GPS industry. It represents a significant demonstration of the rapid adoption of the system by courses worldwide, with an acute focus toward delivering advertisers unfettered yet unified, multi-continent and highly penetrable messaging opportunities.”

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.

ProLink www.goprolink.com

       

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