Business Merger: Xhibit And NB Manufacturing
On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Mergers & Acquisitions on Wednesday, June 13, 2012.
There are a number of reasons why a business may decide to look at its choices with other companies. Some California companies are simply looking for a way to position themselves closer to the top of the ladder or to grow their company at a rapid pace. On the other hand, a business merger may be in the financial interest of one of the involved companies. For Xhibit and NB Manufacturing, it seems as though it boiled down to a company that could better supply the marketing industry with the proper digital platform.
Effective June 4, Xhibit has completed its merger with the corporation NB Manufacturing, Inc. With this merger, Xhibit is now a wholly-owned subsidiary of the company as was NB Manufacturing, Inc. prior to the business merger. With the received shares from the company's common stock, Xhibit will come into over 83 percent ownership of the company's outstanding stock.
Xhibit is a technology development company that focuses primarily on mobile and online social media as well as digital advertising. They also specialize in customer relations management solutions and games. The company utilizes its services and products to provide some of the most superior digital advertising and marketing solutions for top clients.
Xhibit is currently in the process of creating and incorporating a social media platform that should provide supplementary advertising revenue, which is primarily the reason behind the merger, as NB Manufacturing, Inc. felt as though Xhibit could provide a better advertising environment and provide better return on investment for clients.
When a California company decides to merge their company with another, it is a situation that takes a lot of careful thought and meticulous planning. There is a lot of information that has to be sorted through prior to a merger being finalized and it is in everyone's best interest to ensure that rigorous planning of the merger is exercised.
Source: The Sacramento Bee, "Xhibit Completes Merger With NB Manufacturing," June 7, 2012