SAN FRANCISCO, CALIFORNIA--(Marketwire -05/15/12)- Bitzio, Inc. ("Bitzio" or "the Company") (OTC.BB: BTZO), a leader in media, mobile games, and the gamification of mobile apps, today announced that it has agreed upon terms to acquire German mobile gaming and software company, ACT Smartware ("ACT"). The acquisition terms have been agreed upon by both companies and a signed letter of intent setting out the terms has been executed. The acquisition is subject to final due diligence and certain requirements under German law. It is expected that the transaction will close in 1-2 weeks.
Upon formal execution of the agreements in Germany, the ACT team and all assets will become a part of Bitzio, Inc. The acquisition will be completed using only Bitzio shares and no cash outlay from Bitzio. All revenues generated by the acquisition will be re-invested into the growth of marketing, development and growth of Bitzio's mobile games. ACT reported 2011 revenues of approximately $1 million USD. Bitzio anticipates revenue to continue to be generated through existing ACT clients and apps, as well as new apps that will come to market shortly.
"This acquisition has been unlike any other in Bitzio's history. The ACT team has already been working intimately with Bitzio and has been integral in the development and deployment of key products such as our EveryoneApps platform. With approximately 4,000 apps deployed through EveryoneApps, we have already seen the depth of talent the ACT team brings to us. They have amazing technical expertise and incredible knowledge of the gaming user experience - both skills we're very happy to continue expanding in house," commented William Schonbrun, President and CEO of Bitzio.
Tobias Berlin and Gerd Mettendorf, founders of ACT Smartware, have been in the technology sector since 1993 and 1985, respectively. They have created innovative software solutions for large multi-national companies such as Daimler/Chrysler and Bosch, both of which are still on the company's client roster. In 2008, as early adopters to mobile technology, Berlin and Mettendorf created their first apps. To date, their business apps consistently receive 4-5 star user ratings and deliver higher revenue then most gaming apps.
Schonbrun continued, "This adds another critical piece to our mobile gaming and entertainment story. With our recent acquisitions of MPC, Knuckle Face Games and now ACT, Bitzio has the technical talent, mobile app deployment, marketing and media and animation capabilities to create the best in mobile gaming experiences in the world. In fact, we already have plans in place to utilize many of ACT's existing apps and update them with a media and animation user experience from MPC, resulting in apps that will blow users' minds. These apps will be like playing inside a Pixar movie with gamification and behavioral data continually making the experience better every time a user signs in."
Tobias Berlin, Founder of ACT adds, "Developing app concepts and creating the technology to make them happen is where we excel. Bringing those ideas to life successfully in terms of marketing is a challenge for developers of any level. What intrigued us about Bitzio was their ability to see the big picture and string together the talent and assets which power the mobile app consumer experience as well as offer companies behavioral data and access to their fan bases. It is the first all-encompassing solution we have seen in the mobile apps sector and we are proud to become a part of Bitzio."
About Bitzio, Inc.
Bitzio's mission is to help mobile app developers get the full potential of their mobile apps by increasing consumer reach, conversion rates and bottom line profitability. Bitzio's strategic arsenal of methodologies and technologies allows mobile app developers to quickly develop, market and monetize their apps. The company aims to be responsible for the download of 1 Billion apps by 2014. For more information, visit www.bitzio.com. To learn more about Bitzio, watch their video or connect with Bitzio on Twitter and Facebook.
About ACT Smartware
ACT Smartware is a German software and mobile app technology developer. Founded in 1999, the company services industrial clients with software and solutions for desktop as well as mobile smartphone systems for quality checking. ACT Smartware also offers technology consulting and creates mobile gaming apps for the general consumer industry.
"Bitzio", is a trademark of Bitzio, Inc., "ACT Smartware" is a trademark of ACT Smartware. All other companies and products listed herein are trademarks or registered trademarks of their respective holders.
This news release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Canadian securities laws, including statements relating to expectations the 2012 fiscal year; The terms and phrases "goal", "commitment", "guidance", "expects", "would", "will", "continuing", "drive", "believes", "indicate", "look forward", "grow", "outlook", "forecasts", and similar terms and phrases are intended to identify these forward-looking statements. Forward-looking statements are based on estimates and assumptions made by Bitzio in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that Bitzio believes are appropriate in the circumstances, including but not limited to general economic conditions, Bitzio's expectations regarding its business, strategy and prospects, and Bitzio's confidence in the cash flow generation of its business. Many factors could cause Bitzio's actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, without limitation: risks related to competition; Bitzio's reliance on key personnel; Bitzio's ability to maintain and enhance its brand; and difficulties in forecasting Bitzio's financial results, particularly over longer periods given the rapid technological changes, competition and short product life cycles that characterize the mobile application industry. These risk factors and others relating to Bitzio that may cause actual results to differ are set forth Bitzio's periodic filings with the U.S. Securities and Exchange Commission (copies of which filings may be obtained at www.sedar.com or www.sec.gov). These factors should be considered carefully, and readers should not place undue reliance on Bitzio's forward-looking statements. Bitzio has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.