KIWB Kiwibox com Inc (CE)

Following the announcement, reported on Form 8-K on September 24, 2013, of the signing, on September 30, 2013, Registrant closed the Equity Purchase Agreement (the “Acquisition Agreement”) and acquired interscholz Internet Services GmbH and Co. KG, a German limited liability company, and all of the equity of its general partner, interscholz Beteiligungs GmbH (collectively, “Interscholz”) from Andre Scholz, the President and Chief Executive Officer of Registrant. Legal title to the equity of Interscholz was transferred to Registrant’s wholly-owned German subsidiary, KWICK! Community GmbH and Co. KG (“KWICK!”), also a party to the Acquisition Agreement.

Pursuant to the terms of the Acquisition Agreement, Registrant, through its subsidiary, KWICK!, acquired all of Seller’s right, title and interest in and to all of the assets and properties, tangible and intangible, owned, held or used in connection with Interscholz’s internet and telecommunications business, located in the Town of Leonberg in the Federal Republic of Germany. Pursuant to the Acquisition Agreement, Registrant is obligated to pay the purchase price of 1 million Euros, or approximately $1,350,000 U.S. dollars, on or before November 15, 2013.

Interscholz Internet Services GmbH Co. KG (“Interscholz”) was founded by Andre Scholz in 1996 as a traditional Internet service provider based in Stuttgart, Germany. Beginning in 2001, Interscholz became a Class 3 licensed German telecommunication carrier, permitting Interscholz to engage in the commercial transmission carrier business in the region of Leonberg, Germany. In 2002, Interscholz established its headquarters in Leonberg, Germany, and in 2006 purchased a commercial building to where it moved its operations. 

Interscholz offers internet services to approximately 1,000 business customers. Interscholz offers nation-wide internet access in Germany via xDSL and fibre connections, with more than 200 network peerings at different Exchange Points (e.g. DECIX. S-IX), maintaining relationships with various local and international internet service providers. In the Leonberg, Germany region, Interscholz manages its own fiber optic and copper network connections with bandwidths ranging from 5 Mbits to 10 Gbits, permitting business customers wide bandwidth data connections.

In addition, Interscholz owns and operates multiple data centers in the regions of Leonberg and Stuttgart with a capacity of up to 5000 Servers, covering a total area of ​​over 650 square meters. All data centers are connected with multiple redundant 10 Gbit/s lines to guarantee network availability for Cloud Services, Platform Virtualization and Datacenter Failover Services. Standard web hosting, domain-and email services and international MPLS VPN Networks are running and managed on approximately 100 Interscholz-owned servers and routers.

Interscholz has four full-time and 1 part-time employees at its Leonberg headquarters.

 As set forth in Item 2.01 above, in connection with the closing of the Acquisition Agreement, Registrant is obligated to pay the purchase price for Interscholz of 1 million Euros (approximately, $1,350,000 U.S.) to Andre Scholz on or before November 15, 2013.