AppTech and Super Star Learning Sign Letter of Intent for AppTech to Acquire Super Star Learning
THE WOODLANDS, Texas, May 24, 2011 /PRNewswire/ -- AppTech Corp (Pink Sheets: APCX) announced today that it has entered into a letter of intent (LOI) to acquire Super Star Learning Corp of San Clemente, California. Eric Ottens, CEO of AppTech Corp commented: "Super Star and AppTech have been working together towards a union that we believe will have a dramatic impact on the world of education and of course by extension, our companies. What is particularly attractive is that there is so much synergy between our two companies. Together we will make a significant contribution towards transforming education in the 21st century. We will take 'distance education' and offer it through smartphones and tablet computers."
Some of the key features that make Super Star Learning especially attractive are:
- Super Star's products are specifically designed to satisfy new federal mandates that provide school systems with a clear pathway to implement the new requirements.
- Super Star is first to market with project-based learning platforms for common core standards integration.
- First to market with social achievement software with full integration to Facebook.
- Solid client base and excellent growth trajectory; revenue growth projected from $3.1 million in the first year to $20.2 million by the third year.
- Aggressive growth strategy targeting schools at the district, county and state level.
- Current revenue projection based on existing revenue stream exceeds $1.8 million.
- Software as a service model provides ongoing revenue streams and historical 85-90% renewal rates.
- High gross margins of 50% for product subscriptions and 70% for training.
- Current 9% market penetration in Hawaii that represents 6% greater results than expected in the test market launch.
- Successful management team with over 80 years of C-level experience with emerging companies and over 40 years in education technology.
- New pilot programs are underway at multiple sites in San Diego county and LA Unified school districts.
Completion of the Super Star acquisition is subject to numerous conditions including, and without limitation, further due diligence, final negotiations and completion of a definitive acquisition agreement.
Forward-Looking Statements
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may," "future," "plan" or "planned," "will" or "should," "expected," "anticipates," "draft," "eventually" or "projected." You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report.
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SOURCE AppTech Corp
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