New Frontier Media has closed its buy of IGallery following shareholder approval Thursday. The deal fastens the entire IGallery stable - including Interactive Telecom, 90 percent of Card Transactions, and of course IGallery itself - to New Frontier, one of the few adult video and entertainment companies traded publicly.
The deal involves New Frontier transferring an aggregate six million restricted common stock shares (30 percent of their outstanding stock) to the IGallery companies. The deal is said to be worth about $31 million.
IGallery is a group of Internet businesses offering a wide range of adult content and technical capabilities to hundreds of thousands of subscribers and some 10,000 Webmasters - major attractions for New Frontier, the company says.
"(They) have significant expertise in Internet traffic management, pointing over 23 million visitors per month to their sites," says New Frontier chairman and CEO Mark H. Kreloff. "The IGallery Companies have the technical capability and expertise to support traffic volumes in excess of 100 million visitors per month. Through ITN, they can manage their own software development, bandwidth requirements, reporting systems, transaction processing, fraud control and other e-commerce based functions."
IGallery president Greg Dumas says the acquisition makes the combine the most "content-rich" outfit on the Internet.
