REDWOOD CITY--- Signature Devices, Inc. Signs Letter of Intent to Acquire 7th Level Entertainment Group, LLC
Signature Devices, Inc. (PINKSHEETS: SDVI) today announced that the company has signed a letter of intent for the acquisition of the 7th Level Entertainment Group, LLC. Pursuant to the terms of the merger agreement, 7th Level Entertainment and its subsidiaries will become a wholly owned subsidiary of Signature Devices, Inc. upon closing of the transaction. Current sales for 7th Level Entertainment Group and its subsidiaries that will be part of the acquisition are in excess of $2 million and expected to be in the $4-6 million dollar range for 2009.
"As part of our business plan and in order to build shareholder value, we have begun to seek acquisitions for Signature Devices, Inc.," said Kenneth Hurley, Signature Devices, Inc. Chief Executive Officer. "The mergers and acquisitions strategy allows us to grow the company at a much faster rate than trying to do it organically. The acquisition of 7th Level Entertainment Group will give us greater strength with music and audio studios, lighting and events in addition to artist management."
The initial agreement in the form of a letter of intent provides the framework for a subsequent definitive agreement under which Signature Devices, Inc. would acquire 7th Level Entertainment Group as a wholly owned subsidiary. The details of the proposed deal will be included in the definitive agreement. The letter of intent outlines additional due diligence, audit work and other terms that must be fulfilled to proceed to the definitive agreement and to subsequently effect a close of the transaction.
The plan for 7th Level includes additional acquisitions, the addition of new members to the management team, and the development of additional business lines within the entertainment industry while maintaining and growing Signature Devices, Inc.'s core business. Graffiti Entertainment will be able to leverage the music and audio studios for game development as well as leverage the event and artist management for published video games.
About Signature Devices, Inc. and Graffiti Entertainment, Inc.:
Based in Redwood City, CA, Signature Devices, Inc. creates, develops and manufactures advanced information technology, including computer systems, software and electronics products. One of the Company's premiere technologies includes a blend of hardware and software for image generation technology used in video games and simulations. Signature Devices also owns Graffiti Entertainment, Inc., (www.GraffitiEntertainment.com), a publisher of interactive entertainment software for advanced entertainment consoles.