NeoMedia Technologies, Inc., has signed a non-binding letter of intent to sell its Micro Paint Repair business unit to Jose Sada, a technology partner of NeoMedia Micro Paint Repair, backed by the Global Emerging Markets Group (GEM) of New York City.
Charles T. Jensen, president and CEO of NeoMedia, said the sale of the Micro Paint Repair division "would allow NeoMedia to focus its full attention and resources on its core technology businesses, NeoMedia Mobile and NeoMedia Telecom."
Jensen said that following due diligence and negotiation of material terms of the transaction, the letter of intent calls for execution of a definitive purchase agreement by October 27, with closing on or before November 24.
GEM, with Julio Marquez as a managing partner, is a $1.8B private investment group specializing in control, minority and public market investing. Its activities are both domestic and international, spanning a diverse array of industries and transactional structures.
NeoMedia acquired what is now NeoMedia Micro Paint Repair from CSI International, Inc., of Calgary, Alberta, Canada in February of 2004 for $2.5 million in cash and seven million shares of NeoMedia stock.
As part of NeoMedia, the business unit grew in size and scope. From its flagship micro paint repair services, NeoMedia Micro Paint Repair evolved to be an international developer, supplier and trainer to automotive aftermarket service providers, offering a comprehensive line of technologically advanced automotive rejuvenation and preservation products, processes and systems. The company has distribution and system licenses in place in the Peoples Republic of China, Latin America, Australasia, and Scandinavia, and has been marketing Micro Paint Repair licenses world-wide, offering operators of car washes, repair centers and auto aftermarket shops an opportunity to expand their businesses and service offerings. The company's high-end retail facilities in Fort Myers and Calgary double as retail and training centers, and are equipped with advanced assembly line techniques to offer state-of-the-art business practices and live demonstrations of all proprietary NeoMedia Micro Paint Repair products and services.