Extech Corp. Acquires DCAP Insurance; DCAP Goes Public.EAST MEADOW East Meadow, uninc. residential and commercial city (1990 pop. 36,609), Nassau co., SE N.Y., on W Long Island. , N.Y.--(BUSINESS WIRE)--Feb. 26, 1999--Dealers Choice Automotive Planning Inc. (DCAP) and its affiliates were acquired yesterday by Extech Corporation (Bulletin Board: EXTH), a holding company with diversified diversified (di·verˑ·s interests, in exchange for stock. Immediately following the transaction, Extech changed its name to DCAP Group Inc. and adopted a new ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors - DCAP - under which company stock began trading yesterday. The acquisition was approved at Extech's annual stockholder's meeting at company headquarters yesterday morning. Alliance with The Robert Plan Corp. Concurrently with the acquisition, Eagle Insurance Company, a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of The Robert Plan Corporation, purchased approximately 12.6% interest in the total shares of common stock outstanding. The transaction represents a strategic alliance between DCAP, the largest independent retail insurance chain in the Northeast, and The Robert Plan, one of the largest insurers of assigned-risk drivers in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . The alliance makes The Robert Plan Corp. among the first insurance companies to own a principal interest in an independent agent network, where its products will compete directly with other companies'. "DCAP has the critical mass to carry a product portfolio representing approximately 26 different insurance companies. We have access that works very effectively and very competitively for our retail insurance customers in greater New York/New Jersey," said Morton L. Certilman, Chairman of DCAP Group. "DCAP is in a prime position to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the accelerating trend toward `pinpoint' products developed to meet emerging financial customer needs." Private Placement As previously announced, a private offering of between $1.5 and $2.0 million of the company's common stock is expected to commence within the next 30 days. The securities offered in the private placement will not be registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration under the Securities Act or an exemption from the registration requirements thereof. DCAP Overview DCAP, which was named one of the 25 fastest growing companies on Long Island in 1996, presently includes 56 wholly owned, joint ventured and franchised insurance stores throughout New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and New Jersey. The Robert Plan will add five new insurance products to the DCAP portfolio, which already includes a full range of vehicle, homeowners, business and life insurance products from approximately 26 companies. In addition to its insurance products, DCAP also provides an income tax preparation service for retail customers. Continued diversification into other new insurance products and personal financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. is expected to increase DCAP's market share and support the company's geographical expansion in the future. "DCAP provides a critical service to the fastest growing segment of the population in our region, which perfectly positions the company for future growth and deeper market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" ," said Kevin Lang, DCAP Group's President. DCAP Insurance, founded in 1981 by Kevin Lang and Abraham Weinzimer, presently services nearly 100,000 retail customers in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , Long Island, Westchester County (New York), and New Jersey. For additional information, contact Morton L. Certilman at (516) 794-6300. Note: Interviews available on request. |
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