Surge Components to Acquire Orbit Network Inc.

Surge Components, Inc., a technology company based in New York, has announced its plan to acquire Orbit Network Inc., an e-commerce company specializing in the leisure and international travel industries. The acquisition aims to expand Surge's presence in the rapidly growing e-commerce market, leveraging Orbit's proprietary connections to major airline reservation systems and online platforms. The deal is expected to be finalized upon completion of due diligence, receipt of a fairness opinion, and shareholder approval.

Key Takeaways:

• The proposed acquisition is valued at $25 million, representing 76% of Surge's outstanding shares.
• Orbit Network Inc. generates annual gross revenues in excess of $2.3 million and projects over $12 million in revenue for 1999.
• The acquisition enables Surge to tap into the $3.6 trillion worldwide travel spending market, with leisure travel accounting for approximately 50% of the total.
• Orbit Network Inc. has formed partnerships with notable clients, including Eurostar UK Ltd., Air Jamaica, and Monaco Ministry of Tourism.
• The acquisition is expected to bolster Surge's e-commerce capabilities, positioning the company for long-term growth in the technology sector.

Statistics:

• Worldwide travel spending: $3.6 trillion
• Leisure travel's share of worldwide travel spending: approximately 50%
• Orbit Network Inc.'s annual gross revenue: over $2.3 million
• Projected revenue for Orbit Network Inc. in 1999: over $12 million
• Number of shares Surge will issue to acquire Orbit Network Inc.: 25 million (76% of outstanding shares)
• Total value of the proposed acquisition: $25 million

Sources:

• Business Wire, "Surge Components, Inc. Signs Letter of Intent to Acquire Orbit Network Inc." (Dec. 29, 1998)
• Securities and Exchange Commission filings by Surge Components, Inc. (1998)
• Equilink, LLC, investor relations information (N/A)