ST-LAMBERT, QC, June 8 /CNW/ - Roctest Ltd ("Roctest" or "the Company") (TSX: RTT), a leading designer and manufacturer of high-precision sensors for the civil engineering market and applications in the energy, healthcare and process control industries, today announced that it has agreed to acquire the assets of Geomation Inc, of Denver, CO. Geomation's field data acquisition and control solutions help customers take physical measurements in harsh and remote environments.
"The acquisition of the Geomation product line is consistent with our strategy of offering the most complete toolbox of solutions to our customers," said Francois Cordeau, President & CEO of Roctest Ltd. "The Geomation product line will allow direct data acquisition of our geotechnical instruments as well as integrate seamlessly with our recently released monitoring service SHMLive. I am very pleased to be able to add leading technology with decades of proven results in the field and millions of dollars invested in its development."
Data acquisition systems are a required element of the structural health monitoring system of all major civil engineering projects. Roctest has traditionally provided that aspect of the implementation through partnerships with third parties, including Geomation. Roctest will now be able to offer customers a more comprehensive solution based on its own in-house technology.
Geomation was founded in 1982 to satisfy the need for improved methods of obtaining timely physical measurements from the field. Its System 2300 was the first networked system designed specifically to overcome the barriers inherent in collecting data automatically from instrument clusters deployed within and around dams. The recently updated OutDAQ(TM) generation uses industry standard communication protocols and is more cost effective and reliable for dispersed outdoor installations.
John Klebba, founder and CEO of Geomation, has committed to join Roctest in order to facilitate the transition of the manufacturing site to St-Lambert, to support the training of the Roctest sales channel and to continue the promotion of the Geomation product line.
"I am very excited about Roctest's ability to offer unique solutions to our customers," said John Klebba. "With the industry's most complete product line of geotechnical instruments and structural health monitoring solutions, as well as worldwide distribution capabilities, Roctest should be able to expand the market for Geomation products."
The Geomation asset purchase, which is expected to close later this week, will be funded out of Roctest's existing cash resources. While the anticipated revenue contribution is not considered material to Roctest in 2010, the Company expects the addition of the new product line to make a positive contribution to net income within the current fiscal year, based on maintaining existing sales volumes and the realization of identified cost savings.
About Roctest Ltd
Roctest designs, manufactures and markets sensors and high-precision measuring instruments for civil engineering and energy, healthcare and industrial control applications in the industrial sector. The Company is recognized for its leading-edge technology, the quality of its technical expertise and its product development capabilities for challenging and demanding environments. Its products are mainly sold internationally. The shares of the Company are listed on the Toronto Stock Exchange under the symbol RTT. To reach Roctest Ltd via the worldwide web please visit www.roctest.com.
Caution concerning forward-looking statements
Except for historical information provided herein, this press release may contain information and statements of a forward looking nature concerning the future performance of the Company. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events, and as such involve a number of risk factors. Such factors may include, without excluding other considerations, risks related to foreign exchange fluctuations, evolution in customer demand for the Company's products and services, the impact of price pressure from competitors and general market trends, economic and geopolitical changes. As a result, readers are advised that actual results may differ from expected results. The Company is not required to update or revise publicly its forward-looking statements, except as may be required under applicable law.
SOURCE ROCTEST LTD.
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