Pittsburgh, PA, May 02, 2023 (GLOBE NEWSWIRE) -- FOMO WORLDWIDE, INC. (US OTC: FOMC) has agreed to acquire Brookwood Media Arts, Inc., (“Brookwood”; www.brookwood.com), a pioneer in the field of custom content creation and management services. Founded in 1995 in the Greater Philadelphia area, Brookwood is a generalist content provider that supports many fields, including but not limited to:
- Enterprises offering online training and instruction to their employees,
- Colleges and universities offering coursework to students in specialized fields of study,
- Government agencies training staff and employees on regulated products and markets, and
- Technology companies adding to their internal and external digital content libraries.
Brookwood generated peak annual revenues of $2.4 million. During the pandemic, the business pivoted towards virtual meetings and remote collaboration services and support that were in high demand at that time. Today, the entity is on a normalized revenue run rate of several hundred thousand dollars and is EBITDA+. Management intends to rapidly expand Brookwood’s generalist content repertoire by adding regional sales and corporate development staff via a virtual work environment and by deploying dedicated salespeople at FOMO’s corporate HQ in Pittsburgh, PA. Brookwood has also created its own Learning Management System (LMS) through its nearly three decades of content creation for hundreds of embedded customers. This library will be further leveraged for bundled LMS / content sales and should provide cost synergies to FOMO’s other planned acquisitions in this industry.
Transaction Details
The Brookwood purchase, previously unnamed while due diligence was underway, is now an exclusive agreement extended through no later than June 30, 2023, at which time, if not sooner, FOMO intends to move to definitive agreement and then close. Consideration of $400,000 is composed of the following: 1) $150,000 cash, 2) $150,000 restricted Preferred B stock, 3) $100,000 performance based earnout driven by sales of at least $1 million in 2024-2025, and 4) an employment agreement for Brookwood’s CEO and owner. Although management has agreed to operate the business for 1-2 years, or more if needed, FOMO is interviewing executive candidates with large corporate enterprise experience to strengthen Brookwood’s business development and provide a transition plan as needed. FOMO’s other signed acquisition targets in LMS and enterprise content creation, including Business Media Solutions, Inc. (“BMS”), are part of management discussions as a global organization is constructed.
Addressing Multi-Billion Dollar Enterprise E-Learning Market:
According to a comprehensive research report by Market Research Future (MRFR), “Corporate E-learning Market Research Report, by technology, by training type - Forecast till 2030”, this sector will reach a valuation of $117.5 billion by 2030, growing at a 15.6% CAGR during the forecast period (2020-2030):
Management Commentary
Said Brookwood owner Rob Seskin: “Combining Brookwood with FOMO and its series of planned enterprise LMS / content acquisitions will help set the business, founded by my family 28 years ago when this industry was nascent, on a course to achieve its true upside potential as part of a much larger organization serving multiple industries in multiple markets in the U.S. and abroad. It’s time to take our business to a larger scale leveraging our heritage and reputation. We are excited to be part of the FOMO family. As we move forward, I believe the sum will be greater than the parts.”
Said Vik Grover, FOMO’s CEO: “The Brookwood purchase provides our Company accretive revenues and margin, a platform that will accelerate growth and expansion into high enterprise markets, and potential synergies with our other planned investments including recently announced definitive agreement with BMS. We intend to leverage Brookwood and BMS as a beachhead into online training and compliance and expand into new verticals to multiply our scope and scale. Brookwood is the second in a series of planned transactions that mark a new period for our organization as we transition from value-added solutions for K12 schools to online content, training, and compliance for enterprises, institutions and government generating high margin recurring contractual revenues supporting strong growth and a higher valuation.”
Presentation Materials and Further Information for Investors
For further information on FOMO WORLDWIDE, INC. and its strategy for growth, including named and unnamed acquisitions under purchase agreements, please go to our website @ www.fomoworldwide.com/ or see Form 8-K filed on the SEC’s EDGAR system @ www.sec.gov/.
About Brookwood Media Arts, Inc.
Brookwood Media Arts, Inc. (www.brookwood.com) is has been developing innovative and sound learning solutions and applications for a broad range of industries. The Company provides end-to-end and white-glove solutions for clients in a vast range of industries and verticals, including post-secondary education, enterprises, government agencies, and digital technology companies. Products and services include custom eLearning solutions, virtual event production and support, learning technology solutions, leadership development programs, and the Brookwood Learning Hub LMS.
About Business Media Solutions, Inc.
Business Media Solutions, Inc. (www.intratrain.com & www.inspectitrac.com) is a training, testing, inspections and management systems company specializing in helping companies in the food, agribusiness, animal health and nutrition, and general industries, grow and realize a positive return on their investment. The BMS approach can result in better trained employees, reduced risk, lower costs, and improved ROI.
About FOMO WORLDWIDE, INC.
FOMO WORLDWIDE, INC. (www.fomoworldwide.com/) is a publicly traded company focused on business incubation and acceleration. The Company invests in and advises emerging companies aligned with a growth mandate. FOMO is developing direct investment and affiliations - majority- and minority-owned as well as in joint venture formats - that afford targets access to the public markets for expansion capital as well as spin-out options to become their own stand-alone public companies.
Forward Looking Statements:
Statements in this press release about our future expectations, including without limitation, the likelihood that FOMO WORLDWIDE, INC. will be able to meet minimum sales expectations, be successful and profitable in the market, bring significant value to FOMO’s stockholders, and leverage capital markets to execute its growth strategy, constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties and are subject to change at any time, and our actual results could differ materially from expected results. The Company undertakes no obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this statement or to reflect the occurrence of unanticipated events, except as required by law. FOMO’s business strategy described in this press release is subject to innumerable risks, most significantly, whether the Company is successful in securing adequate financing. Additionally, although the Company has announced letters of intent to acquire additional companies, there is absolutely no assurances that any such transactions will result in a completed acquisition. No information in this press release should be construed in any form, shape, or manner as an indication of the Company’s future revenues, financial condition, or stock price.
FOMO WORLDWIDE, INC.
Investor Relations
(630) 708-0750
IR@fomoworldwide.com
