ST. PETERSBURG, Fla.,
July 5, 2011 /PRNewswire/ -- INFRAX
SYSTEMS, Inc. (OTC BB: IFXY), a global provider of unified Smart
Grid-related products and services for the Energy and Utility
industries, announced today that it has entered into an agreement
to acquire Southern Power & Controls (SPC), a privately-held
electrical contractor, and recognized leader in providing mission
critical control applications for utility, industrial and security
applications.
Under the terms of the agreement, INFRAX Systems will acquire
Southern Power & Control for approximately $4.9M mostly in cash, plus a combination of notes
and stock at closing. INFRAX will continue to support Southern
Power & Control's customer base and expand their offerings to
include the implementation of INFRAX's smart grid product
portfolio.
Highlights of the transaction include:
- Generated revenue in excess of $22,000,000 in 2010
- Generated average revenue of over $18,000,000 per year in past 5 years
- 17-year track record of consistent growth and
profitability
- Considered to be the premier complex electrical systems
contractor in the Southeast
- Adds high voltage and substation certification to INFRAX's
technical workforce
- Outstanding performance reputation with water utilities and
treatment facilities
"SPC is a recognized leader in the implementation of complex
performance critical systems and has an impressive track record of
operational and financial performance with over 15 years of
increasing profitability. Their established customer relationships
make them a perfect addition to the INFRAX Family particularly at
the moment smart grid technology is on the top of the utility
industry agenda," said Paul J.
Aiello, CEO of INFRAX Systems. "Their reputation and
experience will enable us to expand our relationships with electric
utilities and their experience with water and gas utilities will
open additional markets for our security and communications
solutions."
The SPC technical team's expertise in the implementation and
maintenance of complex electrical and control systems will
significantly augment INFRAX's technical capabilities, especially
as it relates to switchyards, substations and distribution systems.
Management of the combined Companies will include executives
from both organizations. Southern Power & Control's 2010
revenues exceeded $22M, with
forecasted 2011 design and construction revenues expected to equal
2010 revenues, on a standalone basis and has a significant backlog
of committed infrastructure contracts extending well into 2012.
INFRAX anticipates significant revenue growth as a result of adding
SPC's design and installation capabilities to our Secure
Intelligent Energy Platform.
"We are excited about the opportunity to join the INFRAX team
and further expand our portfolio to include the implementation of
their smart grid and communications solutions. The relationships we
have built over the last 17 years should be a terrific inroad
for INFRAX to sell their smart grid portfolio," said William Barry, Founder & CEO of SPC.
"INFRAX's commitment to securing the energy grid and their
corporate values match well with the culture we have built at
SPC."
Founded in 1994, SPC is a eighty employee, full-service
electrical contracting firm, headquartered in Tampa Florida, providing consulting, project
management, design, installation and maintenance services to a
broad array of customers. Major clients include Tampa Bay
Water, General Electric, Lockheed Martin, Orlando Regional
Utilities, Convanta Energy, Ohio Transformer, Ring Power, Ballast
Needham and Siemens. Additionally, SPC has implemented baggage
handling control and security systems for Boston's Logan International Airport Delta
Terminal, Fort Lauderdale
International Airport, Southwest
Florida International Airport, Tampa International Airport and the Port of
Tampa.
"We are continuing to execute on our strategy to augment our
organic growth through targeted acquisitions. We recently completed
the acquisition of controlling interest in Lockwood Technologies, a
leading Asset Management and RFID solutions provider and have begun
the process of integrating Lockwood's capabilities into our
portfolio. Our agreement with SPC is further evidence of our
commitment to become a global leader in smart grid security and
communications solutions," added Aiello. "While we continue to be
presented with acquisition opportunities, we are prioritizing our
efforts on closing those which bring the greatest value to our
shareholders. To that end, we have placed several other pending
acquisitions, including BSI, on the back burner to focus our
efforts on completing the transaction with SPC."
Additional financial details of the transaction will be
disclosed with the completion of the acquisition or when available.
About Southern Power & Controls
Southern Power & Controls is a privately-held electrical
contractor providing advanced technology, progressive management
and ethical client relationships. SPC has become Southeast's
preferred electrical contractor, provides performance-critical
applications specializing in technical consulting, electrical
maintenance services, control systems, purchasing, project
management and construction. SPC has also been recognized as the
Tampa Bay Business of the Year.
From Boston's Logan
International Airport to U.S. Sugar, Southern Power & Controls
is a highly experienced electrical contractor with a proven record
of delivering the service you deserve with the skill and
craftsmanship your project demands. Southern Power & Controls'
commitment to excellence and integrity sets new standards for
client satisfaction and loyalty.
For more information visit: www.southernpower.net
About INFRAX Systems
INFRAX Systems offers a series of interrelated operational
management, communications, and grid security related products and
services known as Secure Intelligent Energy Platform (SIEP). Our
products enable a comprehensive and unified solution for
communications and applications management of the Smart Grid. SIEP™
incorporates a wide array of communications, security, device and
data management tools for Smart Grid applications such as advanced
metering solutions and grid optimization. SIEP platform creates a
unified solution to securely manage Advanced Metering
Infrastructure (AMI) and distribution automation. INFRAX's secure
smart grid platform, incorporates a communications transport and
management system, (Grid Mesh™), device and data security
management, and ultimately secures intelligent endpoint devices
(SIED). The secure management of the "last mile" backhaul will be
necessary for utilities to implement Smart Grid applications
including AMI, real-time pricing, Demand Side Management (DSM),
Distribution Monitoring and Automation. When combined, these
applications can offer economic, operational and environmental
benefits for utilities, and ultimately the utility's customers.
For INFRAX Systems information,
contact Investors@Infraxinc.com or
visit www.infraxinc.com.
Forward-Looking Statements
This press release may contain forward-looking statements
covered within the meaning of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements relate to,
among other things, plans and timing for the introduction or
enhancement of our services and products, statements about future
market conditions, supply and demand conditions, and other
expectations, intentions and plans contained in this press release
that are not historical fact and involve risks and uncertainties.
Our expectations regarding future revenues depend upon our ability
to develop and supply products and services that we may not produce
today and that meet defined specifications. When used in this press
release, the words "plan," "expect," "believe," and similar
expressions generally identify forward-looking statements. These
statements reflect our current expectations. They are subject to a
number of risks and uncertainties, including, but not limited to,
changes in technology and changes in pervasive markets.
Contact:
Media Contact:
INFRAX Systems, Inc.
investors@infraxinc.com
727-498-8514
SOURCE Infrax Systems, Inc.