ORIGINAL: ZoomerMedia Limited Announces Close of Sale of Assets of Darwin CX Inc.
2020-08-19 08:46 ET - News Release
TORONTO, Aug. 19, 2020 (GLOBE NEWSWIRE) -- Further to its media release dated May 18, 2020, ZoomerMedia Limited (“ZoomerMedia”) (TSXV: ZUM) is pleased to announce that it has closed the agreement (“Purchase Agreement”) for the sale of substantially all of the assets (“Darwin Assets”) of ZoomerMedia’s wholly-owned subsidiary Darwin CX Inc. (“Darwin”), ZoomerMedia’s proprietary subscription and membership management platform, to New York–based Irish Studio LLC (“Irish Studio”). The purchase price was $7,465,000 (CAD), consisting of $700,000 (CAD) received concurrently on signing of the Purchase Agreement, and $5,386,000 (CAD) in cash and a $1,280,000 promissory note of Irish Studio, subject to customary post-closing adjustments, which were received by ZoomerMedia on the closing date.
“ZoomerMedia committed significant resources to creating Darwin in a space that hasn’t seen innovation in decades, so it’s not surprising that it developed into a competitive software platform in a short period of time. Darwin naturally complements Irish Studio's core business and they are better positioned to invest the additional resources necessary for long-term growth.
“The sale price is in line with our expectations, fetches good value for ZML shareholders, strengthens ZML's financial position, and allows us to focus our energy on growing our core media businesses focused on Canada’s 45plus demographic,” said ZoomerMedia Founder and CEO Moses Znaimer.
The Special Relationship between ZoomerMedia and Darwin will not end with the sale. ZoomerMedia Chief Digital Officer and Darwin co-founder Omri Tintpulver will sit on Darwin’s Advisory Board, and the company’s operations will continue to be based at ZoomerMedia’s headquarters in Toronto’s Liberty Village for now. ZoomerMedia will assist with product and service development, while Darwin will continue to manage subscriptions for ZoomerMedia’s flagship print publication Zoomer Magazine, and membership for the company’s affiliate advocacy association CARP (formerly known as the Canadian Association of Retired Persons).
Current Darwin President and co-founder Laas Turnbull will now serve as Darwin CEO, and fellow co-founder Michael Smith will serve as Chief Technology Officer and Head of Innovation.
“We’re thrilled to be continuing the great work Moses started,” said Liam Lynch, Co-Chairman of Studio Media Group. “We looked at every player in the space and Darwin’s customer-centric software technology is head and shoulders above the rest in serving the needs of subscription and membership organizations. This will give our clients modern tools to develop new revenue streams and find innovative ways to grow their businesses.”