Business
BSM Technologies Inc. Announces Acquisition of Praxis Transportation Solutions Inc.
TORONTO , Aug. 11, 2014 /CNW/ - BSM Technologies Inc. (" BSM " or the " Company ") (TSX-...
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[{"type":"text","content":"\n\n\nTORONTO, Aug. 11, 2014 /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 that it has\n acquired 100% of the issued and outstanding shares of privately held\n Praxis Transportation Solutions Inc. (\"Praxis\"), an Alberta based company (the \"Acquisition\").\n\n\nFounded in 2004 by Tom and Bryce Hong, Praxis provides driver compliance\n solutions primarily to a Class I railroad customer. Some of Praxis's\n key product offerings include driver vehicle inspection reporting,\n driver qualification and background checks, carrier profile reporting,\n EOBR audits, along with regulatory guidance consulting.\n\n\n\"Praxis provides us an excellent platform upon which to build our\n current hours of service solution into a fully outsourced driver\n compliance offering,\" said Aly Rahemtulla, BSM's President and CEO.\n \"This expanded offering will be of value to customers across all of our\n verticals, and reiterates our commitment to helping companies manage\n all aspects of regulatory compliance with one industry leading\n solution. Praxis brings us tremendous regulatory experience and\n expertise in Tom and Bryce, and further deepens our relationship with\n an existing Class 1 railroad customer.\"\n\n\nConsideration for the Acquisition includes $300,000 CAD in cash to be\n paid on closing, plus certain working capital adjustments. Further\n deferred contingent consideration consists of up to $1,975,000 CAD in\n cash (the \"Cash Portion\") and $1,000,000 CAD in common shares of BSM (\"Common Shares\"). The Cash Portion is contingent on Praxis successfully securing a\n long-term contract with its existing Class I railroad customer and the\n amount of the Cash Portion to be paid is directly tied to the term and\n the annual amount of revenue generated by such contract. In connection\n with the Acquisition, the Company will issue 500,000 Common Shares of\n BSM at a price of $2.00 CAD per Common Share and such Common Shares\n will be placed in escrow. Pursuant to the terms of an escrow agreement,\n the Common Shares will be released from escrow upon attaining certain\n enumerated driver compliance revenue targets.\n\n\nAbout BSM Technologies Inc. (bsmwireless.com)\n\n\nBSM Technologi...