Information Analysis Closes Acquisition of Gray Matters, Inc.
December 13 2021 - 8:30AM
Information Analysis Incorporated (“IAI” or “the Company”)
(NASDAQ:IAIC) today announced it has closed the previously
announced acquisition of Gray Matters, Inc (“Gray Matters”).
The consideration at closing consisted of $7.5
million cash; deferred consideration of $1.5 million; and $1.5
million in IAI stock. The terms also include up to $4.0 million in
additional consideration for achieving certain performance metrics
in 2022.
Gray Matters is a leader in blockchain and
encryption algorithm technology and was founded to solve real-world
problems through purpose-built innovation in secure Supply Chain
Management (SCM) in United States intelligence, national security
and diplomatic organizations. In the short time it has been in
existence, the company has transformed how blockchain supports SCM;
constructing a Zero Trust product to secure and monitor the
lifecycle of mission-critical materials from manufacturing through
destruction and recycling.
“As noted in our announcement of the definitive
agreement to acquire Gray Matters, we have been hard at work
repositioning our company to be a leading provider of high-value
software solutions,” said IAI Chairman and CEO Jamie Benoit.
“Closing of this acquisition is a significant piece of the puzzle.
Gray Matters’ platform provides the company with valuable
intellectual property and a beachhead from which to begin executing
on our ambitious plans. Gray Matters’ technology was purpose-built
to solve a difficult global problem to help the mission of a
complex government agency and we’re confident our new capabilities
will scale in the wider government and commercial marketplace. We
start with several million dollars of booked 2022 revenue and a
small but solid contract base with very desirable government
customers and ample cash on our balance sheet.” Mr. Benoit added,
“Jeff Gerald and his team have accomplished much in a very short
period of time. I’m looking forward to working with Jeff to build
on his significant technical achievements and help propel the new
company to something special.”
Jeff Gerald, Gray Matters’ CEO said, “Working
with Jamie and the IAI team is the next logical step for Gray
Matters. Our visions are totally aligned. Jamie’s track record with
government customers like ours combined with his proven ability to
build organizations and raise capital to fund them will help us
grow. His commitment to continue enabling our core customers’
unique requirements will make this a seamless transition and will
give us the ability to do more for them. We are ecstatic about this
next chapter.”
About Information Analysis
Incorporated
Information Analysis Incorporated
(www.infoa.com), headquartered in Fairfax, Virginia, is an
information technology products and services company. The Company
historically specializes in software conversions, systems
modernization and security.
In August 2021, IAI appointed Jamie Benoit to
lead a corporate transformation of IAI into a provider of edge
technology solutions to commercial and government organizations.
For over a decade, he served as Chief Executive Officer of FedData,
a technology products and services firm focused on mission support
in the intelligence community and DoD. In that capacity, Mr. Benoit
led FedData through the acquisition of three different companies
and through a sale in that delivered an 80%+ IRR to FedData’s
private equity partners and employee shareholders. He subsequently
delivered nearly 50% EBITDA growth in 18 months to his new private
equity partners prior to leaving the company in 2019.
Additional information for
investors
This release may contain forward-looking
statements regarding the Company's business, customer prospects, or
other factors that may affect future earnings or financial results.
Such statements involve risks and uncertainties which could cause
actual results to vary materially from those expressed in the
forward-looking statements. Investors should read and understand
the risk factors detailed in the Company's 10-K for the fiscal year
ended December 31, 2020, and in other filings with the Securities
and Exchange Commission.
For additional information contact:
Jeremy Hellman, CFAVice PresidentThe Equity
Group Inc.(212) 836-9626
Tim Hannon, CFOthannon@infoa.com(703)
293-7925
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