Universe2U expects to complete the acquisition of Baltimore-based Digital Global Internet Inc. (DGI) within 75 days.
Universe2U is not paying cash or shares upfront, however, a newly formed subsidiary will be assuming up to $800,000 of liabilities and approximately $900,000 of assets.
In addition, DGI can earn up to $1.2 million worth of shares for 2,500 hotel rooms installation based on the trading price of the Company`s stock at the time of delivery of the first hotel contract and for a total of 5,000 rooms, an additional $1.2 million worth of shares based on the trading price of the Company`s stock on first or second anniversary of closing of the deal.
DGI offers RoomHost, an in-room interactive terminal that provides travelers with high-speed Internet connectivity. The 5,000 hotel room installation required for DGI to achieve the maximum earn out is expected to create $3.7 million in revenue. DGI`s business plan anticipates capturing 10% of the 2 million high-end hotel rooms in the USA, which could be expected to generate $150 million in annual revenue. The new business model provides the Hotel owner with an amenity to get more “heads in beds.”
RoomHost provides hotel guests with high-speed Internet connectivity and other computer applications through its state-of-the-art in-room terminal, enabling users to bypass the hotel`s PBX for their computing needs. RoomHost off-loads the data traffic to a separate high-speed network specifically designed to carry data. The RoomHost solution enables hotelguests to download large documents and high-resolution images quickly. The RoomHost system is installed in rooms and meeting facilities, either hard-wired or wireless, supporting growing data connectivity needs, especially for business travelers requiring a robust and reliable network environment. Among other advantages are ready access to information about dining, local events, and entertainment.