Business
Route1 Acquires DataSource Mobility
Route1's PCS Mobile Named Genetec ™ AutoVu ™ Premier Partner of the Year...
About this update from Route1 Inc.
[{"type":"text","content":"Route1 Acquires DataSource MobilityRoute1's PCS Mobile Named Genetec™ AutoVu™ Premier Partner of the YearTORONTO, ON / ACCESSWIRE / March 29, 2021 / Route1 Inc. (OTCQB:ROIUF) and (TSXV:ROI) (the \"Company\" or \"Route1\"), an advanced North American provider of data-centric business empowerment solutions, today announced that it has acquired DataSource Mobility, LLC and its wholly owned subsidiary, VetSource Mobility, LLC (collectively \"DSM\").Founded in 2007 by William Presler, DSM, operating as DataSource Mobility, is primarily a reseller of ruggedized tablets and laptops along with associated accessories. DSM offers guidance and state-of-the-art mobile devices for a wide range of sectors including public safety, utilities, field services, logistics and healthcare as well as state and local governments.DSM is located in located in Clarksville, Tennessee and serves markets in the Southeastern United States including Alabama, Missouri, Tennessee and Texas. Route1 paid U.S. $1.3 million in cash at closing to acquire DSM and did not assume any debt.Route1 has also agreed to share with DSM's prior owners the gross profit generated by defined DSM accounts once the actual gross profit exceeds a threshold for the balance of the 2021 calendar year and 2022 calendar year. The threshold is U.S. $375,000 for the last nine months of 2021 and U.S. $500,000 for calendar year 2022.In millions of US dollarsFY 2019FY 2020Revenue$4.21$5.10Gross Profit$0.40$0.49Note: The numbers presented above are unaudited. DSM's fiscal year end is December 31st.On closing, Route1 acquired net working capital of approximately U.S. $40,000 with no long-term liabilities or debt. There were no property leases or other leases as part of the transaction.Route1 is acquiring DSM for the following reasons. The acquisition:accelerates Route1's planned expansion of its business model into Texas, a strong and growing market;grows our key enterprise and public safety accounts in the energy, logistics and local government sectors;provides us with the opportunity to add to the size and quality of our sales team; andallows us to leverage DSM's current and future sales of rugged mobile devices to expand Route1's profitable field service installation business providing customers with end-to-end service including configuration, asset tagging and vehicle installati...