TORONTO, Nov. 20 /CNW/ - Hosted Data Transaction Solutions Inc. ("HDX")
announced today that it has signed a letter of intent to acquire Biz-Pro Ltd.
("Biz-Pro") for $3,000,000 subject to closing adjustments. The purchase price
will be satisfied by the payment of $2,000,000 in cash and by the issuance of
1,000,000 HDX common shares, which will be subject to a 36 month hold period.
The cash portion of the transaction shall be satisfied with cash that HDX has
available in its treasury. No financing is required for this transaction and
the parties to the transaction are at arms length.
HDX (formerly Dexit Inc.) is listed on the TSX under the symbol HDX.
Biz-Pro, established in 1975, is a profitable London based point-of-sale
technology company with annual revenue of approximately $3.2 Million. HDX
recently announced the acquisition of Howell Data Systems QSR and Sabrepoint
Inc. The historical annual revenue of these companies combined with Biz-Pro
Ltd. is approximately $10 million.
Specializing in solutions for the hospitality industry, Biz-Pro has
fourteen employees and has deployed over twenty thousand systems across
Canada. Biz-Pro provides services to thousands of customers including Compass
Group Canada, Sodexho, Brown's Fine Foods, Mary Brown's Fried Chicken, and
"The agreement with Biz-Pro is a tremendous step forward in our goal of
building a very significant organization dedicated to providing business
control systems, business intelligence tools and consumer payment systems,"
says Paul Howell, president and CEO of HDX. "Jim and Kathy Jearvis have built
an amazing company and many Biz-Pro team members have over fifteen years of
experience. Biz-Pro has been a leader in the Canadian point of sale industry
for over thirty years and our corporate philosophies towards providing quality
products and excellent customer service are closely aligned.
"These are exciting times for the Biz-Pro team," says Jim Jearvis,
President of Biz-Pro. "The added features and benefits of the HDX product line
will enhance our sales efforts and give us an opportunity to better serve our
customer base. The larger combined company provides the extra team resources
required to develop advanced technology and the ability to service customers
in a wide geographic area."
Jim Jearvis and Chris Jearvis, VP of Operations will manage the day to
day operation of the Biz-Pro organization moving forward.
"This is very positive news for both our client base and our team," says
Chris Jearvis, VP of Operations. "This partnership gives Biz Pro the
enterprise management tools that we have wanted to offer to our large client
base for quite some time."
The transaction is expected to close on Jan 1st 2008 and is subject to
completion of due diligence by HDX, customary closing conditions, receipt of
all necessary regulatory approvals and the negotiation and execution of a
definitive purchase and sale agreement.
About the Company
Hosted Data Transaction Solutions Inc. is in the business of managing
merchant transactions with consumers and facilitating payment. HDX develops
and deploys touch screen POS (point of sale) system software and associated
enterprise management tools and has developed and deployed numerous POS
applications. HDX also provides system hardware integration services, merchant
staff training, system installation services, and post sale software and
hardware support services.
Leading edge technology also includes customer self serve kiosks and
"line buster" mobile point of sale terminals. These products have been
designed to dramatically enhance customer throughput and drastically reduce
customer queues. These technologies are especially effective in high foot
traffic environments that have limited cash register counter space, limited
retail square footage, and the absence of a drive through.
HDX pioneered an "instead of cash"(R) electronic based payment
facilitation service. The Dexit(R) Service can be private branded for a
specific merchant and enables customers to pay for items quickly and
conveniently with the tap of a RFID (radio frequency identification) tag
linked to a pre-paid account. This Dexit Service payment solution is
especially well suited for corporate and institutional cafeteria environments
where hundreds of customers purchase and pay for meals in compressed periods
throughout the business day.
(R) Registered trade-mark of Hosted Data Transaction Solutions Inc.
To find out more about Hosted Data Transaction Solutions Inc., visit our
website at www.dexit.com.
To find out more about Biz-Pro, visit Biz-Pro's website at
For further information:
For further information: Paul Howell, President, CEO, Hosted Data
Transaction Solutions Inc., (416) 703-6462, extension 263