Numerex Announces Definitive Agreement to Acquire Omnilink
Merger Expands Product Portfolio in Core and Emerging Markets, Increases
Recurring Service Revenues
ATLANTA, April 29, 2014 (GLOBE NEWSWIRE) -- Numerex Corp (Nasdaq:NMRX) a
leading provider of on-demand and interactive machine-to-machine (M2M)
enterprise solutions announced today that it has signed a definitive agreement
to acquire Omnilink Systems Inc., an award-winning M2M company providing
reliable and intuitive tracking and monitoring solutions to businesses,
consumers, and government agencies. With Omnilink's technology, product
offerings, and strategic alliances, Numerex expands its position in the
fast-growing security and safety, tracking and monitoring market segments.
Omnilink enables consumer solutions offered by the top tier-one wireless
network operators, including mobile personal emergency response systems and
child tracking services. According to a 2012 Frost & Sullivan market analysis,
the 10-year U.S. data consumption forecast for the Security and Safety Segment
totals 28.4% CAGR with connections growing from 2.8M in 2013 to 4.8M by 2018*.
The transaction is expected to be accretive to the Company's non-GAAP earnings
per share in 2014 and beyond, and to significantly improve its competitive
position, while enabling a number of synergistic growth opportunities in the
commercial, government, and consumer markets. Omnilink, founded in 2004 and
based in the Atlanta metro area, is a leading provider of offender electronic
monitoring, asset tracking, personal tracking, and lone worker safety
solutions. Omnilink offers a SaaS (Software-as-a-Service) recurring revenue
model selling to and through market leaders across many industries. Its
SaaS-based recurring revenues of $11 million account for the majority of the
nearly $13 million in total sales recorded in calendar year 2013.
Kelly Gay, President and CEO of Omnilink said, "We are very pleased to be part
of Numerex, a company well-regarded for delivering interactive and on-demand
M2M products and services along with innovative enterprise solutions, and that
shares our core belief that M2M technology can change the world that we live
in. We couldn't be more excited to be part of the Numerex family and work with
some of the best M2M technology leaders in the world."
Commenting on the pending acquisition, Stratton Nicolaides, CEO and chairman
of Numerex said, "We welcome Kelly Gay, Omnilink's CEO, and our new associates
to the Numerex family. We are combining two highly talented and seasoned teams
who have been addressing the needs of the M2M and Internet of Things (IoT)
marketplace since the industry's inception. We are excited by the prospects of
utilizing Omnilink's robust M2M platform, technology, deep domain expertise,
and strong industry relationships to drive opportunity in both existing and
adjacent markets. We see the combination of Omnilink and Numerex as unique in
that it creates significant growth opportunities through product enhancement
and channel expansion. We expect this transaction will strengthen our
development roadmap in key enterprise verticals and will serve as a
foundational step in our long-term growth strategy to be the market leader in
select M2M solutions."
The definitive agreement provides that Numerex will pay $37.5 million in cash
for the business. Both parties expect to close within 30 days. The transaction
will be funded through cash-on-hand and a $25 million term loan to be provided
by Silicon Valley Bank.
Additional information regarding the financial impact of the transaction will
be provided on the upcoming earnings call on May 7, 2014 at 4:30 pm Eastern.
Track and monitor people and things brilliantly with the world's most reliable
and intuitive solutions, powered by Omnilink. Omnilink's award-winning M2M
platform connects hardware, networks, software, and support services to bring
end-to-end solutions to life. Since 2004, global brands, U.S. government
agencies, businesses, and consumers have used Omnilink to monitor the
location, safety, and condition of vehicles, assets, offenders, loved ones,
fleets, employees and more. For more information, visit www.Omnilink.com.
Numerex Corp. (Nasdaq:NMRX) is a leading provider of interactive and on-demand
machine-to-machine (M2M) enterprise solutions. The Company provides its
technology and services through its integrated M2M horizontal platforms, which
are generally sold on a subscription basis. The Company offers Numerex DNA®
that may include hardware and smart Devices, cellular and satellite Network
services, and software Applications that are delivered through Numerex FAST®
(Foundation Application Software Technology). The Company also provides
business services to enable the development of efficient, reliable, and secure
solutions while accelerating deployment. Numerex is ISO 27001 information
security-certified, highlighting the Company's focus on M2M data security,
service reliability and around-the-clock support of its customers' M2M
solutions. For additional information, please visit www.numerex.com.
*Frost & Sullivan 2012, US M2M Communications Markets: Data Consumption and
Connection Forecasts in the Security and Safety Segment, United States,
This press release contains, and other statements may contain, forward-looking
statements with respect to Numerex future financial or business performance,
conditions or strategies and other financial and business matters, including
expectations regarding growth trends and activities. Forward-looking
statements are typically identified by words or phrases such as "believe,"
"expect," "anticipate," "intend," "estimate," "assume," "strategy," "plan,"
"outlook," "outcome," "continue," "remain," "trend," and variations of such
words and similar expressions, or future or conditional verbs such as "will,"
"would," "should," "could," "may," or similar expressions. Numerex cautions
that these forward-looking statements are subject to numerous assumptions,
risks and uncertainties, which change over time. These forward-looking
statements speak only as of the date of this press release, and Numerex
assumes no duty to update forward-looking statements. Actual results could
differ materially from those anticipated in these forward-looking statements
and future results could differ materially from historical performance.
The following factors, among others, could cause actual results to differ
materially from forward-looking statements or historical performance: our
inability to reposition our platform to capture greater recurring subscription
revenues; the risks that a substantial portion of revenues derived
fromcontracts may be terminatedat any time; the risks that our strategic
suppliers materially change or disrupt the flow of products or services;
variations in quarterly operating results; delays in the development,
introduction, integration and marketing of new products and services; customer
acceptance of services; economic conditions resulting in decreased demand for
our products and services; the risk that our strategic alliances, partnerships
and/or wireless network operators will not yield substantial revenues; changes
in financial and capital markets, and the inability to raise growth capital;
the inability to attain revenue and earnings growth; changes in interest
rates; inflation; the introduction, withdrawal, success and timing of business
initiatives and strategies; competitive conditions; the inability to realize
revenue enhancements; disruption in key supplier relationships and/or related
services; and extent and timing of technological changes. Numerex SEC reports
identify additional factors that can affect forward-looking statements.
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other marks contained herein are trademarks of Numerex Corp. and/or Numerex-
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their respective owners.
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