Business
BSM Technologies Completes Acquisition of AutoVision Wireless Inc.
TORONTO , June 3, 2013 /CNW/ - BSM Technologies Inc. ("BSM" or the "Company") (TSX-V: GP...
About this update from Great Plains Metals Corp.
[{"type":"text","content":"\n\n\nTORONTO, June 3, 2013 /CNW/ - BSM Technologies Inc. (\"BSM\" or the\n \"Company\") (TSX-V: GPS), a leading provider of remote monitoring, fleet management, fleet diagnostics and automated vehicle security systems, today announced the closing of\n its previously announced intention to acquire AutoVision Wireless Inc.\n (\"AutoVision\"), a private company in the telematics industry, for up to\n $14.7 million in cash and share consideration (prior to working capital\n adjustments).\n\n\n\"This is a transformational acquisition for BSM,\" said Aly Rahemtulla,\n President and CEO of BSM. \"It significantly increases our EBITDA and\n recurring revenue base - giving us more than $14.5 million in combined\n annual recurring revenue - and is immediately accretive to earnings per\n share. This transaction also diversifies and strengthens our business\n from a geographic and market vertical perspective, as AutoVision has a\n strong presence in Western Canada and is well established in the\n energy, utility and construction sectors.\"\n\n\nAutoVision specializes in fleet management, GPS tracking, mobile data\n communications, and telematics. For the 12 months ended December 31,\n 2012, AutoVision generated annual recurring telematics revenue of $5.3\n million with 72% gross margins and $2.5 million in EBITDA (including\n $0.3 million of SR&ED tax credits). AutoVision has approximately 37\n employees with offices in Toronto and Edmonton.\n\n\nMr. Rahemtulla added: \"The acquisition of AutoVision will create a\n stronger consolidated product platform and give us greater geographic\n reach, which will benefit the customers of both companies. The\n complementary product offerings and verticals also provide important\n cross-selling opportunities for our sales teams. In addition to these\n potential revenue synergies, we expect to realize annual cost savings\n of approximately $0.5 million as we bring the businesses together.\"\n\n\nConsideration to be paid for AutoVision on closing will include $5.7\n million of cash and 714,286 shares of BSM which will be issued at\n $1.40. A further $8.0 million of consideration, comprised of up to $5.0\n million in cash and up to 2,142,858 common shares, is subject to the\n attainment of $5.0 million of recurring revenue in year 1 and $5.5\n million in recurring revenue in each of years 2 and 3. Al...