DirectView Acquires Texas-Based Video Surveillance, Security Providers

The acquired companies, Video Surveillance LLC and ApexCCTV LLC, based on unaudited financial statements for fiscal 2016, have combined revenues of about $5.3 million.

BOCA RATON, Fla. – DirectView Holdings (OTC PINK: DIRV), a company focused on ownership and management of video and security technology companies, has completed the acquisition of and ApexCCTV, two Texas-based companies operated and solely owned by Mark Harris.

Based on the unaudited financial statements for fiscal 2016, the combined revenue of the acquired companies is approximately $5.3 million, according to a news release.

Under the terms of the transaction, DirectView acquired all of the issued and outstanding equity interests of each of the acquired companies for approximately $1.9 million in cash to be paid around six months from the date of acquisition.

Upon the successful completion of a two-year audit of the acquired companies , in accordance with U.S. GAAP accounting standards, DirectView will pay an additional amount ranging from $2,000 to $500,000, based on the positive average annual cash flow achieved in fiscal years 2015 and 2016.

DirectView has received a non-binding term sheet to finance the payments, as well as to fuel future growth of the combined companies. DirectView also intends to explore a number of potential financing sources to achieve the best long term results for the company and its shareholders, according to the release.

As part of the transaction, Harris has entered into a three-year employment agreement with DirectView, where he will serve as president of the acquired companies. Harris is a technology services veteran with more than 25 years’ experience.

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As senior vice president of Americas operations and global services at Intervoice, Harris led a team that was responsible for pioneering the execution of a new enterprise hosted solutions business to support advanced self-service applications and intelligent transactions.

Beginning in 2008, upon the acquisition of Intervoice by Convergys Corp., he served as senior vice president of global technology services at the company through 2014.

“The acquisition of these companies is a very exciting transformational event for DirectView as we position for current and future growth,” says Roger Ralston, CEO and Chairman of DirectView. “Mr. Harris has built two businesses that in less than three years, are generating substantial revenue and, more importantly, positive cash flow.”

Ralston says Harris’s expertise in establishing a nationwide market presence through direct and online sales, coupled with DirectView’s ability to tailor customized solutions in the marketplace, will “set the stage to achieve significant organic sales growth in the coming years.”

The acquisitions also give DirectView “critical mass to opportunistically roll-up other security and surveillance companies, in order to further accelerate the growth of our business and build significant long term value for our shareholders,” Ralston says.

Harris adds, “I am excited to now be a part of the DirectView team as we work to become a force in our industry, by creating a very attractive roll-up platform. Through this combination, all of our companies will benefit from increased bandwidth, greater expertise and more wide ranging sales opportunities.”

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