EdgeTech Services Inc. (www.EdgeTechservices.com;
stock symbol OTCBB: EDGH) has signed a definitive agreement to acquire
Internet search engine Web's Biggest Inc. EdgeTech has also setup
a share buyback plan to purchase up to 20 Million common shares.
EdgeTech will acquire Web's Biggest
using Convertible Preferred Shares. As part of the agreement the company
will receive a cash injection of $250,000 from Web's Biggest.
Web's Biggest (www.websbiggest.com)
had net income of more than $1.5 million for the twelve months ending
March 2005. Profits have grown more than 50% compared to the previous
year with most revenue automatically recurring. Net margins are also
more than 50%.
The high profit margins are due to
its highly automated and scaleable IT infrastructure. This allows
the company to grow rapidly without needing significant additional
capital.
Web's Biggest is the world’s
largest "wiki" based search engine. Its Editors Choice directory
is localized for 230 countries in 70 different languages.
Web's Biggest has licensed the entire
Whois database of more than 40 million domain names, enabling them
to search almost every website in the world. Other search engines
rely on hyperlinks and manual submissions to find websites. In a recent
study done by the company, other search engines missed a third to
more than half the Web sites in Web's Biggest search results.
"This is a dramatic change in
our company's direction that firmly places EdgeTech in one of the
hottest sectors in Information Technology. The potential value of
this transaction is tremendous for our shareholders," says Tae
Ho Kim, CEO of EdgeTech.
"Web’s Biggest's popularity
worldwide, its high margin business model, high growth rate and its
strong management team were factors that sealed our decision to move
forward.
""This deal will make EdgeTech
highly profitable. Entering the internet search and directory space
with Web's Biggest proprietary technology will provide our shareholders
with dramatic upside.
"This will be an all-stock transaction
result in a change in control. Additional details are available in
EdgeTech’s 8K filing on Edgar. EdgeTech will file Web's Biggest
8KA financial statement within 71 days.EdgeTech plans to replace three directors
with two new ones. Xavier Roy and Adam Radly from Web's Biggest will
join the company's management.
Xavier Roy will be Chairman and CEO of EdgeTech. Roy has 20 years
experience managing technology and consulting companies. He has had
leading roles in Litton industries, Thomson Group, Cap Gemini Ernst
& Young, Cinebase, Veon, and Etensity where he developed and implemented
new strategies that resulted in a growth of sales and profits of more
than 100%.
Adam Radly was founder and CEO of publicly
traded ISIS. He helped raise almost A$100 million for the company.
The company then merged with AAV (www.aav.com.au) to form Australia's
largest media services company. Radly is also cofounder of XSIQ Pty
Ltd (www.xsiq.com), a leading educational software company.
About EdgeTech
EdgeTech's primary business is IT consulting covering the following
areas: IT Security, Biometrics, Business Solutions, Systems Engineering,
Software Development and Project management. EdgeTech is a Business
Partner to Microsoft, IBM, Symantec, Counterpane and many others.
EdgeTech's clients include major government and private sector clients
in Canada and the United States.
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