Outdoor Digital Signage Market Builds with Acquisition

Mediacaster, 6/29/2007


Calgary’s Skyboard Corporation is being acquired by Powerstar International, a wireless and digital signage solutions provider, under the terms of a definitive agreement announced today. Skyboard operates six outdoor digital billboards in Alberta and has sales contracts for an additional twenty-two billboards across Canada. These billboards reach about fourteen million people each week, the company describes.Skyboard had recently acquired High Point Media Ltd of Edmonton, one of the largest and most experienced video billboard marketing companies in North America. This merger will leverage Skyboard's nine year history of designing and building LED displays with these acquired media service capabilities.
Skyboard will operate as a wholly owned subsidiary of Powerstar and aggressively expand advertising display locations.The purchase consideration is approximately four million, eight hundred thousand (4,800,000) common shares of Powerstar and fifty thousand dollars and twenty ($50,000) in cash. The acquisition is expected to close within a week and is subject to the approval of the TSX Venture Exchange."Skyboard has built some of the largest LED display installations in Alberta and we expect to expand on this success," said Dr. Hatim Zaghloul, Chairman and CEO of Powerstar, in a release. "We are excited about the advertising relationships Skyboard brings and are confident that we can build on those relationships."Robert Hoogveld, president of Skyboard added, "By joining forces with Powerstar, we have created a company with the marketing and financial strength necessary to drive dynamic growth and compete more effectively."Skyboard reports it is on track to achieve about two and half million dollars of profitable revenue within the next twelve months. Hoogveld will carry on as the president of the subsidiary. Terry Balaban is VP Operations and Client Services with Ken Rochat, the VP of Sales.PowerStar is a provider of digital signage/communications networks for consumers, businesses and the US government. Powerstar provides services under its Solutrea brand and companies. The company provides public Wi-Fi networks, digital signage, corporate communications and Business Television over wireless, satellite and terrestrial platforms.