Smith Micro to Acquire Smart Retail Product Suite from ISM Connect
December 18 2018 - 6:30AM
Business Wire
Product Acquisition Will Expand Smith Micro’s
Tier 1 Mobile Operator Customer Base Worldwide and Add Positive
Cash Flow, Expected to be Immediately Accretive for Non-GAAP
Smith Micro Software, Inc. (NASDAQ: SMSI) (“Smith Micro” or the
“Company”) today announced that it has entered into a definitive
agreement to acquire the assets of ISM Connect, LLC’s Smart Retail
product suite.
The powerful Smart Retail platform enables wireless carriers and
retailers to bring devices to life with on-screen, interactive
demos that deliver consistent, targeted and secure content,
including messaging and advertising campaigns. Smart Retail will be
a substantial augmentation to Smith Micro’s business and a logical
addition to a product line that targets wireless carriers. This
acquisition will deliver a new, growing revenue stream and an
expanded customer base.
“We are excited about the synergies this opportunity will
present to deepen and strengthen our core capabilities, while
adding a solid book of business with Tier 1 Carriers both
domestically and internationally,” said William W. Smith, Jr.,
President and CEO of Smith Micro Software. “This acquisition will
not only add a significant and valuable third leg to the Smith
Micro wireless business, but will also give us access to an
incredibly talented base of experienced employees who understand
the industry and will be able to build on our core expertise.”
Offering additional value to carriers, as customers interact
with promotional content, the Smart Retail Platform logs data from
those interactions, enabling carriers to gain powerful insights and
intelligence on their consumer base, the effectiveness of
promotional campaigns, the sales lifecycle, and overall device
sales. The collection and analysis of this data arms carriers with
necessary information to overcome pain points impacting sales
activity. Following each customer interaction, the device is wiped
of any customer-entered data to ensure a new and secure experience
for each customer. With its combination of engaging promotional
content and actionable intelligence, the Smart Retail platform is a
valuable tool that carriers can use to improve sales and
profitability.
“Currently there is minimal competition in this niche space due
to the unique combination of both device and marketing expertise,”
said Smith. “We are acquiring a profitable business that has strong
growth potential as well as a platform that will empower our
analytics capabilities across our entire product portfolio. All of
these factors make Smart Retail a solid addition to the Smith Micro
portfolio of products.”
Pursuant to the terms of the transaction, Smith Micro will
acquire the assets of ISM Connect Smart Retail product suite for a
purchase price of approximately $9.8 million, consisting of $4
million payable in cash and $5.8 million payable through the
issuance of Smith Micro common stock. The transaction is expected
to close upon satisfaction of customary closing conditions as
specified in the asset purchase agreement for the transaction. A
Current Report on Form 8-K containing further details regarding the
asset purchase agreement and the terms of the transaction will be
filed by the Company and will be available on the SEC’s EDGAR
database as well as on the Company’s website under the Investor
Relations section.
The Smart Retail product suite is expected to generate revenue
of approximately $4.0 million in its fiscal year 2018. Smith Micro
intends to provide further details with the release of its fiscal
2018 financial results.
For further information, please visit: Smart Retail Product
Suite
About Smith Micro Software, Inc.
Smith Micro develops software to simplify and enhance the mobile
experience, providing solutions to some of the leading wireless
service providers and Cable MSOs around the world. From enabling
the family digital lifestyle to providing powerful voice messaging
capabilities, our solutions enrich today’s connected lifestyles
while creating new opportunities to engage consumers via
smartphones and consumer IoT devices. Our portfolio also includes a
wide range of products for creating, sharing and monetizing rich
content, such as visual messaging, and 2D/3D graphics applications.
For more information, visit www.smithmicro.com.
About ISM Connect
ISM is an industry innovator building the world’s first
fully-integrated network of smart engagement technology. ISM’s
network of over 100 venues reaches an audience of nearly 110
million consumers. ISM modernizes the way fans experience
events, brands market and venues present themselves. For more
information, visit www.ismconnect.com.
Forward-Looking Statements:
Certain statements in this press release are forward-looking
statements regarding future events or results, including statements
related to the anticipated closing of the Smart Retail product line
acquisition and our expectations regarding the future profitability
of the Smart Retail business, the accretive nature of the
acquisition and the timing thereof, the anticipated benefits to the
Company of acquiring the Smart Retail business, and statements
using such words as “expect,” “anticipate,” “believe,” “plan,”
“intend,” “could,” “will” and other similar expressions.
Forward-looking statements involve risks and uncertainties, which
could cause actual results to differ materially from those
expressed or implied in the forward-looking statements. Among the
important factors that could cause or contribute to such
differences are our ability to close the Smart Retail product line
transaction as expected, our ability to integrate the Smart Retail
business with our existing operations, our ability to continue as a
going concern, our ability to raise more funds to meet our capital
needs, changes in demand for our products from our customers and
their end-users, customer concentration, given that the majority of
our sales depend on a few large customer relationships, new and
changing technologies, customer acceptance and timing of deployment
of those technologies, and our ability to compete effectively with
other software and technology companies. These and other factors
discussed in our filings with the Securities and Exchange
Commission, including our filings on Forms 10-K and 10-Q, could
cause actual results to differ materially from those expressed or
implied in any forward-looking statements. The forward-looking
statements contained in this release are made on the basis of the
views and assumptions of management, and we do not undertake any
obligation to update these statements to reflect events or
circumstances occurring after the date of this release.
Smith Micro and the Smith Micro logo are registered trademarks
or trademarks of Smith Micro Software, Inc. All other trademarks
and product names are the property of their respective owners.
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IR INQUIRIES:Charles MessmanInvestor
Relations949-362-5800IR@smithmicro.com
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