J.L. Halsey Corporation Acquires Uptilt, Inc. For $19.5 Million Print | Email This | Bookmark | Subscribe
Oct. 12, 2005--J.L. Halsey Corporation (OTCBB:JLHY) acquired Uptilt, Inc. based in Menlo Park, California.
If you're not familiar with J.L. Halsey Corporation, they bought Lyris. If you're not familiar with Uptilt, Inc., they own the EmailLabs brand. This acquisition essentially puts Lyris and EmailLabs under one owner, J.L. Halsey Corporation.
According to the details of a BusinessWire release, the merger agreement provides $19.5 million in cash at closing to the owners of Uptilt (of which approximately $2.8 million will be funded through Uptilt's available cash) and will pay two annual installments totaling up to approximately $3.5 million if EmailLabs achieves specified revenue targets in the first and second year following the closing.
J.L. Halsey funded the acquisition through a five year $18.5 million revolving credit line with Comerica Bank at an interest at the prime rate plus 75 basis points or LIBOR plus 375 basis points with the credit line subject to customary conditions, including certain financial covenants.
EmailLabs will compliment Lyris' success in selling installed email marketing software.
After the closing, David Sousa, co-founder, Chairman and CEO of Uptilt and co-founder and CTO, Adrian Liang, will resign but remain as advisors.
According to the release, For the period from January 1, 2005, through September 30, 2005, EmailLabs had approximately $6.4 million in revenue. For 2004, revenue for EmailLabs was approximately $5.7 million with 2004 revenue approximately 80% higher than revenue in 2003. Audited financials for EmailLabs will be filed with the SEC within 75 days.
Jim Herbold, Vice-President of Sales and General Manager of EmailLabs along with other senior managers of EmailLabs, including Loren McDonald, Vice-President of Marketing, and Akshay Vyas, Director of Engineering, will remain with EmailLabs and continue to provide their clients with exceptional service.
David Burt, Chief Executive Officer of JL Halsey is continuing to look for additional email marketing technology acquisition opportunities and you can reach him at 302-691-6189.
Disclosure: As of the time of this report, the founder of List-News does have an ownership position in the covered security.
Additional related resources:
JL Halsey Corp's Yahoo Finance page
JL Halsey Corp's Bloomberg.com Finance page