SIOUX FALLS, SD, November 15, 2006 � LodgeNet Entertainment Corporation
(NASDAQ:LNET), the world leader in bringing interactive television and
broadband solutions to hotels throughout the United States and Canada,
announced today that that it has entered into an agreement to acquire substantially
all of the assets of StayOnline, Inc. for $15.0 million in cash.
StayOnline, based in Atlanta, Georgia, is a leading provider of high-speed
Internet access solutions focused on the lodging industry. Upon completion
of the transaction, which is subject to certain closing requirements that
are expected to be completed in the first quarter of 2007, LodgeNet will
provide Internet access services to more than 175,000 hotel rooms nationwide,
increasing its current base five fold.
�This transaction is a significant step forward in the execution of
our strategy to expand our networks and integrate a broader array of solutions
for our customers,� said Scott C. Petersen, LodgeNet President and CEO.
�Travelers want the same level and quality of Internet access they have
at work and at home; and as a result, we believe hotels will increasingly
want to get that guest-critical service from a financially secure company
they know and trust.�
�StayOnline has a solid reputation in the market for quality solutions
and service,� continued Petersen. �They are a preferred or approved
provider for such major organizations as Marriott, Hilton, Starwood, Omni,
Intercontinental, and Historic Hotels of America. We believe this
transaction leverages the focus both of our organizations have on quality,
combining StayOnline�s engineering, installation, and 24x7 customer help
desk operations with our nationwide technical service organization. This
combination makes us the industry�s only end-to-end, employee-based Internet
solutions offering. We believe hotels will find this a unique and
compelling value proposition for this critical guest connectivity service.
It also presents some very interesting opportunities to integrate applications
between the interactive television and IP-network platforms.�
�We are very pleased to be joining forces with the LodgeNet organization,�
said Antonio DiMilia, President and CEO of StayOnline, Inc. �We have
built a business committed to customer service and satisfaction and believe
this transaction takes our vision to the next level. Adding LodgeNet�s
employee-based nationwide technical service organization to our HSIA offering
creates a solid value proposition. The StayOnline management team and I
look forward to aggressively growing this element of LodgeNet�s business
throughout and beyond LodgeNet�s existing base of one million interactive
television rooms.�
�With this acquisition, LodgeNet continues to serve our lodging customers
and their guests by giving them not only the most services, but also the
best services,� continued Petersen. �We are committed to expanding
our networks and integrating new solutions for the future. As the
industry�s leader and innovator, we remain focused on implementing our
strategic plan and will continue to seek opportunities to grow our business.�
Daniels & Associates, a Denver-based telecommunications, cable,
media and technology, mergers and acquisition specialists firm, represented
StayOnline in the transaction.
About StayOnline, Inc.
Headquartered in Atlanta, Georgia, StayOnline, Inc. (www.stayonline.net),
is a leading provider of high-speed Internet solutions to the hospitality
and lodging industry. StayOnline, Inc. is an innovator in the industry
and the first provider to focus on fully wireless solutions. StayOnline
has designed and cultivated a wireless high-speed Internet solution that
is not only cost-effective, but also serves as a paramount form of Internet
security for guest and conference connections. StayOnline offers
the most reliable solution in the industry with an extremely high guest
connection success rate. The Company also offers clients services
and applications such as customer reporting systems, bandwidth shaping,
conference room services, voice over IP telephony solutions, and cellular/
Wi-Fi converged applications. StayOnline has relationships with some
of the industry�s foremost hospitality management companies and holds the
distinction of preferred or approved provider status with Marriott, Hilton,
Omni, InterContinental Hotels Group, Starwood, and Historic Hotels of America.
About LodgeNet
LodgeNet Entertainment Corporation (www.lodgenet.com)
is the world leader in interactive TV and broadband solutions to hotels
throughout the United States and Canada as well as select international
markets. These services include on-demand movies, on-demand games, music
and music videos, subscription sports programming, and television on-demand
programming, as well as high-speed Internet access; all designed to serve
the needs of the lodging industry and the traveling public. LodgeNet provides
service to more than one million interactive hotel rooms and serves more
than 6,000 hotel properties worldwide. LodgeNet estimates that during 2005,
approximately 300 million domestic and international travelers had access
to LodgeNet�s interactive television systems. In addition, LodgeNet
is a leading innovator in the delivery of on-demand patient education,
information, and entertainment to healthcare facilities. LodgeNet is listed
on NASDAQ and trades under the symbol LNET.
Forward-looking statement
Certain statements in this press release constitute �forward-looking
statements�. When used in this press release, the words �intends,�
�expects,� �anticipates,� �estimates,� �believes,� �goal,� �no assurance�
and similar expressions, and statements which are made in the future tense
or refer to future events or developments, are intended to identify such
forward-looking statements. Such forward-looking statements are subject
to risks, uncertainties, and other factors that could cause the actual
results, performance or achievements to be materially different from any
future results, performance, or achievements expressed or implied by such
forward-looking statements. In addition to the risks and uncertainties
discussed herein, such factors include, among others, the following: the
effects of economic conditions, including in particular the economic condition
of the lodging industry, which can be particularly affected by international
crisis, acts or threats of terrorism and public health issues; competition
from providers of similar services and from alternative systems for accessing
in-room entertainment; changes in demand for our products and services;
programming costs, availability, timeliness, and quality; technological
developments by competitors; developmental costs, difficulties, and delays;
relationships with clients and property owners; the availability of capital
to finance growth; the impact of government regulations; potential effects
of litigation; risks of expansion into new markets; risks related to the
security of our data systems; and other factors detailed, from time to
time, in our filings with the Securities and Exchange Commission. With
respect to any proposed acquisition, we are subject to risks that integration
costs will exceed expectations, that synergies we anticipate will not be
realized, or will take longer than anticipated to realize, that our management
and management systems will encounter difficulties in dealing with a bigger,
more diversified enterprise, and that the financial results we expect from
the acquisition will not be realized. These forward-looking statements
speak only as of the date of this press release. We expressly disclaim
any obligation or undertaking to release publicly any updates or revisions
to any forward-looking statements contained herein to reflect any change
in our expectations with regard thereto or any change in events, conditions
or circumstances on which any such statement is based.
LodgeNet is a registered trademark of LodgeNet Entertainment
Corporation. All rights reserved. Other names and brands may be claimed
as the property of others.. |