Traffix (TRFX) Soars On Merger Deal with New Motion (NWMO)

September 27, 2007 7:57 AM EDT

New Motion, Inc. (OTCBB: NWMO) and Traffix, Inc. (NASDAQ: TRFX) entered into a definitive agreement to merge in a stock for stock merger.

Under the terms of the merger agreement, Traffix shareholders will receive approximately 0.683 of a share of New Motion for each share of Traffix. The exchange ratio was determined by the parties so that Traffix shareholders will own 45% of the combined company, on a fully diluted basis, and New Motion shareholders will own 55%. The exchange ratio is subject to adjustment under certain circumstances. Based upon the closing price of New Motion shares on September 26, 2007, the date the merger agreement was signed, the merger consideration would have a value of approximately $10.59 per Traffix share.

Management projects that, assuming completion of the transaction by the end of 2007, revenues of the newly combined entity for 2008 could reach between $145 and $160 million.

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