DENVER, June 22, 2010 (GLOBE NEWSWIRE) -- Roomlinx, Inc. (OTCBB:RMLX), the innovative supplier of hospitality in-room Interactive TV products, today announced it has signed a non-binding term sheet to acquire Canadian Communications of Superior, Colorado. Canadian owns and manages two primary subsidiary companies: Cardinal Hospitality, a leading provider of new release pay-per-view movies to over 20,000 hotel rooms in North America and the Caribbean (www.cardinalhospitalityltd.com) and Cardinal Broadband, a leading provider of free-to-guest TV programming, voice and broadband services to hotels, small businesses and MDU (Multiple Dwelling Unit) communities (www.cardinalbroadband.com).
The addition of Canadian's studio content agreements to Roomlinx' Interactive TV product expands Roomlinx' position as one of the most comprehensive entertainment providers in the hospitality segment offering an extensive library of new release titles and bundled content movie packages. Through their international presence on five continents, Canadian's hospitality division will allow Roomlinx to more rapidly expand outside of the U.S. and leverage Canadian's existing customer base to increase sales of the Roomlinx Interactive TV product.
"There is a demand for the Roomlinx Interactive TV product within our existing customer and reseller base. The synergy of a Canadian/Roomlinx combination will allow our customers and prospects to meet their in-room entertainment needs today with a flexible and scalable offering," commented Ed Garneau, CEO of Canadian Communications.
Canadian's broadband division adds value to Roomlinx as a licensed and certified DirecTV and Dish Network provider, a CLEC (Certified Local Exchange Carrier), and ISP broadband provider, allowing Roomlinx to become a single point vendor of all communication and data needs for the hospitality industry. Canadian's MDU business creates a diversified market opportunity for the combined entity and offers another potential vertical market for Roomlinx to penetrate with its Interactive TV product.
"This acquisition will expand our footprint and allows us to own and deliver the services that meet the communication and entertainment needs within the hospitality industry. We will be able to offer multiple service options and significant cost and operational efficiencies to our customers creating increased customer value and retention and a dynamic sales strategy," commented Mike Wasik, CEO of Roomlinx. "This transaction aligns with our strategy to increase our recurring revenue streams, Interactive TV customer base, and shareholder value."
Closing of the transaction is expected to be subject to customary closing conditions, but no assurances can be given that a definitive agreement for the sale will be entered into or that the conditions to consummating the transaction contained in any such definitive agreement will be met.
About Roomlinx
Roomlinx is the hospitality in-room expert providing in-room Interactive TV products for hotels, resorts, and other properties, utilizing premium content and applications demanded by today's traveler. For more information about Roomlinx, visit www.roomlinx.com.
About Canadian Communications
Canadian Communications is a leading provider of premium digital video on demand systems for the hospitality industry and voice, video, and data services for commercial and residential markets. For more information, visit (www.cardinalhospitalityltd.com) and (www.cardinalbroadband.com).
Safe Harbor Cautionary Statement
Certain statements in this news release, including statements that we "believe," "expect," "intend," "plan" or words of similar import, are forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans, new products and services and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include, among other things, the following: the company's successful implementation of the new products and services, demand for the new products and services, the company's ability to successfully compete against competitors offering similar products and services, general economic and business conditions; unexpected changes in technologies and technological advances; ability to commercialize and manufacture products; results of experimental studies research and development activities; changes in, or failure to comply with, governmental regulations; and the ability to obtain adequate financing in the future. This information is qualified in its entirety by cautionary statements and risk factors disclosure contained in certain of the Company's Securities and Exchange Commission filings available at http://www.sec.gov, which you should carefully review. Roomlinx does not assume any obligation to update or revise any forward-looking statements, whether as the result of new developments or otherwise.