TORONTO, June 3, 2013 /CNW/ - BSM Technologies Inc. ("BSM" or the
"Company") (TSX-V: GPS), a leading provider of remote monitoring, fleet management, fleet diagnostics and automated vehicle security systems, today announced the closing of
its previously announced intention to acquire AutoVision Wireless Inc.
("AutoVision"), a private company in the telematics industry, for up to
$14.7 million in cash and share consideration (prior to working capital
"This is a transformational acquisition for BSM," said Aly Rahemtulla,
President and CEO of BSM. "It significantly increases our EBITDA and
recurring revenue base - giving us more than $14.5 million in combined
annual recurring revenue - and is immediately accretive to earnings per
share. This transaction also diversifies and strengthens our business
from a geographic and market vertical perspective, as AutoVision has a
strong presence in Western Canada and is well established in the
energy, utility and construction sectors."
AutoVision specializes in fleet management, GPS tracking, mobile data
communications, and telematics. For the 12 months ended December 31,
2012, AutoVision generated annual recurring telematics revenue of $5.3
million with 72% gross margins and $2.5 million in EBITDA (including
$0.3 million of SR&ED tax credits). AutoVision has approximately 37
employees with offices in Toronto and Edmonton.
Mr. Rahemtulla added: "The acquisition of AutoVision will create a
stronger consolidated product platform and give us greater geographic
reach, which will benefit the customers of both companies. The
complementary product offerings and verticals also provide important
cross-selling opportunities for our sales teams. In addition to these
potential revenue synergies, we expect to realize annual cost savings
of approximately $0.5 million as we bring the businesses together."
Consideration to be paid for AutoVision on closing will include $5.7
million of cash and 714,286 shares of BSM which will be issued at
$1.40. A further $8.0 million of consideration, comprised of up to $5.0
million in cash and up to 2,142,858 common shares, is subject to the
attainment of $5.0 million of recurring revenue in year 1 and $5.5
million in recurring revenue in each of years 2 and 3. All share
consideration paid by BSM upon the attainment of recurring revenue
targets will be issued at $1.40. On closing BSM expects to make an
additional $1.7 million cash payment as a working capital adjustment.
The up-front cash consideration is expected to be partially financed
with a $7.0 million three-year term loan from a National Canadian bank.
The loan has a five-year amortization period.
About BSM Technologies Inc. (bsmwireless.com)
BSM Technologies Inc., through its subsidiary BSM Wireless Inc., is a
leading provider of remote monitoring, fleet tracking, fleet maintenance, and business intelligent engine providing real time, web‐based tracking of mobile and fixed assets. BSM provides solutions for commercial,
government, and law enforcement organizations who manage and operate
diverse assets and large fleets, and who seek to enhance customer
service, improve the safety of their drivers and vehicles, and lower business costs.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release. No
stock exchange, securities commission or other regulatory authority has
approved or disapproved the information contained herein.
SOURCE: BSM Technologies Inc.
For further information:
President & CEO
BSM Technologies Inc.
(416) 815-0700 ext. 289
(416) 815-0700 ext. 278