IndeNet Inc, Los Angeles has a letter of intent to acquire Enterprise Systems Group Ltd, based in London, UK and its units in Colorado Springs, Colorado and in Australia. IndeNet will pay $10m cash, $5m in the form of an 8.0% note amortized over four years and payable quarterly, and around 1.8m new shares. IndeNet estimates the Enterprise Systems companies’ combined revenue is about $50m and earnings before interest, taxes, depreciation and amortization are $5m. But their consolidated earnings may show losses in the near term, primarily because of efforts to deploy the company’s digital spot network – Enterprise Systems designs, manufactures and integrates software that manages advertising time and programming for television stations. IndeNet delivers television commercials and programming, and supplies automation equipment to television operators.
