DecisionPoint Announces Acquisition of Software Vendor APEX Systems Integrators Inc.
Transaction Expected to Be Accretive to Earnings in FY2012; Combination Accelerates Revenue Shift to Higher Margin Software and Professional Services
FOOTHILL RANCH, CA -- (Marketwire) -- 06/05/12 -- DecisionPoint Systems, Inc. (OTCBB: DPSI), a leading provider and integrator of Enterprise Mobility, Wireless Applications and RFID solutions, today announced that it has acquired APEX Systems Integrators Inc., based in Burlington, Ontario, Canada ("APEX"). The purchase price was $5.0 million in cash at closing. In addition, there is an earnout and bonus capped at an additional $8.5 million, which is dependent upon future performance through July 31, 2015. The transaction is expected to be accretive to DecisionPoint's fiscal year 2012 earnings by approximately $0.15 per share on an annualized basis.
APEX, a leading provider of wireless mobile work force software solutions, will operate as a wholly owned subsidiary of DecisionPoint. Don Dalicandro, APEX CEO, will continue in his role, reporting to Nicholas Toms, DecisionPoint's Chairman and Chief Executive Officer. Mr. Dalicandro will also join the company's Board of Directors.
"The strategically important acquisition of APEX will further shift our revenue mix to higher margin software and professional services by between 4 to 6 percentage points resulting in an expected material improvement in our average gross margins of between 2 to 4 percentage points," said Nicholas Toms, CEO of DecisionPoint. "The APEX software product set fits squarely within our retail, field workforce mobility, warehousing, logistics and transportation markets and provides a rich opportunity for cross selling as both companies' customer bases are largely complementary. APEX's strong presence in Canada will also fill out our North American geographic service presence in that important growing market. We welcome Don Dalicandro and his talented team to DecisionPoint, and look forward to building significant shareholder value together."
Commenting on the transaction, Mr. Dalicandro stated, "The combination of APEX and DecisionPoint is the fulfillment of a long held strategic objective to find and join forces with a U.S. based platform company to sell and deliver APEX's robust suite of software products across the United States and all of North America. DecisionPoint is just such a partner. During our due diligence process our expectations were more than met in terms of the quality of skills, and the dedication and commitment of the DecisionPoint team to sell and deliver the best possible mission critical solutions to the most demanding companies in the world. This mirrors our own commitment to excellence, and we look forward to working together with Nic and his team to realize our shared goals."
Maydan Rothblum, a member of DecisionPoint's Board of Directors and Managing Director of Sigma Opportunity Fund II, one of DecisionPoint's largest shareholders, commented, "In addition to the CMAC acquisition completed in 2011, the APEX acquisition is an important next step in DecisionPoint's evolution toward becoming an end-to-end provider of software and professional services targeting the growing enterprise mobility space. Furthermore, the addition of Mr. Dalicandro to the executive management team and board of directors significantly strengthens the company's abilities, knowledge base and experience in the enterprise mobility, wireless application and software and services markets."
Veracap Corporate Finance acted as financial advisor to the vendors and APEX.
For additional information regarding the acquisition, please refer to DecisionPoint's 8-K to be filed with the Securities and Exchange Commission on or before June 8, 2012 and available at www.sec.gov.
About APEX Systems Integrators Inc.
APEX Systems Integrators Inc. is a leading supplier of wireless mobile work force solutions. Its APEXWare™ suite of products utilizes the latest technologies to empower the mobile worker in many areas including merchandising, sales and delivery; field service; logistics and transportation; and, warehouse management. Its clients are North American companies that are household names whose products and services are used daily to feed, transport, entertain and care for people throughout the world. Why APEX? Innovation, quality, business value, industry expertise and on-going service. For more on APEX Systems Integrators Inc. visit http://www.APEXsi.com.
About DecisionPoint Systems, Inc.
DecisionPoint Systems, Inc. (OTCBB: DPSI) delivers improved productivity and operational advantages to its clients by helping them move their business decision points closer to their customers. They do this by making enterprise software applications accessible to the front-line worker anytime, anywhere. DecisionPoint utilizes all the latest wireless, mobility, and RFID technologies. For more information on DecisionPoint Systems visit http://www.decisionpt.com/news.php.
About Sigma Capital Partners
Sigma Capital Partners, LLC, through its private equity fund Sigma Opportunity Fund II, LLC is a multi-strategy private equity firm that focuses on investing equity and mezzanine capital in small-to-mid size public companies operating primarily in the IT, Telecom and Technology industries. The Fund has an active, long-term, strategic investment approach. Sigma Capital works closely with management to unlock shareholder value and provide guidance and assistance in the areas of finance, capital markets, operations, strategy and business development. For more information please visit: www.sigmacp.com.
Forward Looking Statements
Under The Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the statements in this news release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause a company's actual results, performance and achievement in the future to differ materially from forecasted results, performance, and achievement. These risks and uncertainties are described in the Company's periodic filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events or changes in the Company's plans or expectation.
Company Contacts: DecisionPoint Nicholas R. Toms Chief Executive Officer T: 973-489-1425 ntoms@decisionpt.com APEX Don Dalicandro Chief Executive Officer T: (905) 631-5895 ext. 228 don_dalicandro@apexsi.com Investor Relations Contact: Stephanie Prince/Jody Burfening Lippert/Heilshorn & Associates T: 212-838-3777 sprince@lhai.com
Source: DecisionPoint Systems, Inc.
Released June 5, 2012