DecisionPoint Announces Agreement to Acquire CMAC, Inc.
December 23 2010 - 9:58AM
Marketwired
DecisionPoint Systems, Inc. (OTCBB: DNPI), a leading provider of
Enterprise Mobility and RFID solutions, today announced an
agreement to acquire CMAC, Inc., a logistics consulting and systems
integration provider headquartered in Alpharetta, Georgia. The
purchase price of $3.15 million is to be paid 70% in cash and 30%
in stock. The transaction, which is scheduled to close before the
end of 2010, is expected to be accretive to DecisionPoint's 2011
earnings by $0.02 to $0.03 per share fully-diluted.
For the 10 months ended October, 2010, CMAC reported (draft
audited) revenue of $8.8 million and income from operations before
taxes of $781,000. CMAC expects full year 2010 revenue to reach
approximately $11 million. Approximately 40% of CMAC revenue is
derived from the sale of software and services and 60% from the
resale of hardware. Bryan Moss, President of CMAC, will be
appointed Senior Vice President, Professional Services of the
combined company.
"CMAC offers complementary services to similar end markets and
is a good fit with DecisionPoint," said Nicholas Toms, CEO of
DecisionPoint. "Combining with CMAC will shift DecisionPoint's
revenue mix more in favor of services and software, consistent with
our long term plan, resulting in expected incremental gross margin
expansion of 100 to 200 basis points in 2011. In addition, CMAC's
strong presence in the Southeast fills out our geographic service
presence in the U.S. to that important and fast growing region.
CMAC's customer base is largely complementary to our own, providing
a rich opportunity for cross-selling by both companies' teams. We
look forward to working together to deliver world class solutions
to our customers and to drive increasing value for our shareholders
as our industry draws increasing interest from outside
sources."
Commenting on the transaction, Mr. Moss stated, "The combination
of CMAC and DecisionPoint will allow us to leverage our services on
a much larger platform and better service our mutual
customers."
About CMAC, Inc.
CMAC, Inc. is a logistics consulting and systems integration
firm focused on delivering operational and technical supply chain
solutions. Since 1996 CMAC's experienced team has provided cost
effective solutions to over 500 organizations in various industries
and has evolved into a proven market leader. CMAC provides industry
specific know-how in mobile computing, wireless networking,
warehouse management software plus industry solutions for the
entire supply chain from manufacturing to transportation
management.
About DecisionPoint Systems, Inc.
DecisionPoint Systems, Inc. (OTCBB: DNPI) delivers improved
productivity and operational advantages to its clients by helping
them move their business decision points closer to their customers.
They do this by making enterprise software applications accessible
to the front-line worker anytime, anywhere. DecisionPoint utilizes
all the latest wireless, mobility, and RFID technologies. For more
information on DecisionPoint Systems visit:
http://www.decisionpt.com/news.php.
Under The Private Securities Litigation Reform Act of 1995:
Except for historical information contained herein, the statements
in this news release are forward-looking statements that are made
pursuant to the safe harbor provisions of the Private Securities
Act of 1995. Forward-looking statements involve known and unknown
risks and uncertainties, which may cause a company's actual
results, performance and achievement in the future to differ
materially from forecasted results, performance, and achievement.
These risks and uncertainties are described in the Company's
periodic filings with the Securities and Exchange Commission. The
Company undertakes no obligation to publicly release the results of
any revisions to these forward-looking statements that may be made
to reflect events or circumstances after the date hereof, or to
reflect the occurrence of unanticipated events or changes in the
Company's plans or expectation.
Company Contact: Nicholas R. Toms - NJ Office Chief
Executive Officer T: 973-290-0100 ext 110 ntoms@decisionpt.com
Investor Relations Contact: Stephanie Prince/Jody Burfening
Lippert/Heilshorn & Associates T: 212-838-3777
sprince@lhai.com