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Tuesday, 2 October 2012
NeoMagic snags MercadoMagico.com to expand in e-commerce space
NeoMagic Corp (PINK:NMGC) said today it has acquired MercadoMagico.com, an e-commerce platform where users will be able to buy and sell products from one another, or purchase electronic products directly from the site.
The platform will initially target the US market with a special focus on the Hispanic and Latino community.
"With completion of the acquisition of MercardoMagico.com,NeoMagic is positioning itself to execute its e-Commerce strategy of entering the multibillion dollar e-Commerce space," said president and CEO of NeoMagic, Syed Zaidi.
"NeoMagic's entry into the e-Commerce space significantly expands its growth opportunities and accelerates its return to profitability."
NeoMagic designs and develops chip technology for consumer electronic devices for video, television, imaging, graphics, and audio. Its technology solutions offer low power consumption and high performance processing, it said.
The company also delivers a suite of middleware and sample applications for imaging, video and audio functionality, and provides multiple operating system ports with customized drivers for its products.
NeoMagic's semiconductors, or applications processors, are sold under the MiMagic brand name, and has developed the Horizon Digital Picture Frame kit using the MiMagic 6+.
With the acquisition of MercadoMagico.com, the company's goal will be to increase revenues and profits of its high-margin semiconductor and online e-commerce divisions.
NeoMagic said it also aims to increase shareholder value, improve liquidity, create greater access to capital markets and raise brand awareness.
"MercadoMagico.com aims to become the leading e-Commerce marketplace among Hispanic and Latino buyers & sellers in the U.S. and internationally," said chairman of NeoMagic, David Tomasello.
"The Hispanic online community is growing exponentially in major U.S markets; its buying power is on the rise. The Hispanic online vendor and consumer are loyal but remain underserved and it is our intent to cater to this underserved market."
Tomasello, the managing director of Bluestone Financial and Attiva Capital Partners, NeoMagic's largest shareholders, is currently in the final stages of structuring an equity investment in the company.
The details of such investment will be announced in the upcoming weeks, NeoMagic said.