QualityStocks News - As Seen On TV to Acquire eDiets.com, Inc. for $15 Million

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Strong synergies lead to strategic merger and growth of both companies

...opportunity to grow both companies...

QualityStocks would like to highlight As Seen On TV, Inc., a publicly traded direct response marketing company, and owner of AsSeenOnTV.com. The company identifies, develops, and markets consumer products for global distribution via TV, Internet, and retail channels.

In the company’s news yesterday,

As Seen On TV announced that it will acquire eDiets.com, a provider of personalized nutrition, fitness, and weight-loss programs, in a stock-for-stock transaction valued at approximately $15 million.

The merger is slated to occur during the first quarter of 2013, at which time eDiets.com will become a wholly owned subsidiary of ASTV. eDiets.com will continue to be operated by its current management, which led the company’s achievement of $22 million in revenue over the past 12 months.

ASTV noted synergies between the two companies, as well as their shared vision to accelerate eDiets.com’s food meal delivery business. ASTV CEO Steve Rogai said the merger presents an opportunity to leverage both companies’ offerings to form a stronger entity.

“The decision to merge these companies was a very strategic one. At its core, eDiets is a marketing company that uses direct response to sell their proprietary meal delivery program. Because of this, the opportunity to grow both companies using ASTV’s unique direct response and live shopping channel experience will exponentially grow eDiets and help bring the overall public company to the next level,” Rogai stated in the press release.

Kevin Richardson, chairman of eDiets.com, echoed the sentiment.

“I’m extremely excited about this merger. Both entities bring a lot of experience and success marketing products directly to consumers across a wide range of product categories. A lot of synergies exist between the two companies that I feel will create a powerful direct marketing partnership poised for significant growth in 2013 and beyond,” he stated.

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Forward-Looking Statement:

This release may contain 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. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Risks and uncertainties applicable to the company and its business could cause the company's actual results to differ materially from those indicated in any forward-looking statements.

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