WaveDancer, Inc. (NASDAQ: WAVD) announced today it has entered into
a definitive agreement to acquire Knowmadics, Inc. a Software as a
Service (“SaaS”) platform company headquartered in Herndon,
VA. The purchase price of $90 million comprises approximately
$56.5 million in cash and $33.5 million of stock at a price of
$6.50 per share a premium on the company share price as of March
21, 2022. WaveDancer intends to raise approximately $67 million in
a private offering of its common shares in connection with the
transaction. The closing is contingent upon financing. Upon
closing, the company expects revenues from its emerging technology
business to be greater than its legacy Tellenger business.
WaveDancer is a provider of zero trust security
solutions, specializing in secure supply chain management, as well
as cutting edge IT network and data security. WaveDancer’s
technology brings all transactions, documentation, authorizations –
every aspect of a process – together in one web-based interface
that provides an unprecedented level of accountability,
auditability, and predictability. WaveDancer’s enterprise
blockchain and encryption algorithm technology is in production at
the vanguard of critical government requirements.
Founded in 2013 by Paul Maguire and Claire
Ostrum, Knowmadics is a leading Internet of Things (IoT) remote
device management and monitoring platform which provides an
innovative, configurable approach to connect, locate, and secure
thousands of IoT and Operational Technology (OT) devices to a
single management tool. Through the acquisition of Knowmadics,
WaveDancer intends to extend its software to include devices and
enterprise systems, enabling them to uniquely provide end-to-end
security solutions that support data, devices, and transactions in
a single unified platform. Upon consummation of the transaction,
the addition of Knowmadics will expand and solidify WaveDancer’s
customer base with government and Fortune 500 companies.
Jamie Benoit, CEO of WaveDancer said, “We are
determined to provide industry leading, comprehensive device and
data management and security solutions for government and
commercial clients. The anticipated acquisition of Knowmadics
builds on what we started when we acquired Gray Matters and will
greatly expand our capabilities and our current customer base.
Given the increased threat of state-sponsored cyber attacks against
US commercial and government critical infrastructure, we think the
timing and nature of our corporate transformation will position us
well in the commercial and government marketplaces.” He added,
“When we close with Knowmadics, we will be getting great partners
who are making a significant investment in our new platform.
WaveDancer will also take a quantum step forward in our ability to
help government and commercial customers secure and manage the
enterprise in this new age of global unrest.”
“After seeing the transformation that’s been
underway at WaveDancer over the last year, and getting to know
Jamie and the team, I am delighted about this acquisition. We’ve
been approached many times over the years, but no partnership felt
right until now. From a mission focus, culture, and product
offering perspective, our two organizations are in lockstep. I’m
eager to work together and be a key part of the continued evolution
of WaveDancer into a global zero trust, IoT and cybersecurity
leader,” said Paul Maguire, CEO and Co-Founder of Knowmadics.
Claire Ostrum, President and Co-Founder of
Knowmadics stated, “Over the past few years we've successfully
transformed our business to a leading SaaS IoT platform. We are
incredibly proud of what we have achieved and the position we are
in to meet the needs of government and commercial clients. As part
of WaveDancer, we will have the resources to lead the IoT security
markets today, tomorrow and well into the future.”
Upon close, Knowmadics will become a
wholly-owned subsidiary of WaveDancer. The acquisition is expected
to close in the second quarter, subject to customary closing
conditions, including securing the financing for the transaction
and the receipt of WaveDancer shareholder approval for the shares
we intend to issue to finance the transaction.
About WaveDancer
WaveDancer (www.wavedancer.com), headquartered
in Fairfax, Virginia, offers zero trust blockchain-enabled software
solutions for supply chain security. Our technologies are deployed
and being used to help government organizations manage very complex
supply chain challenges. Customers are using the WaveDancer
platform to gain unprecedented levels of accountability,
auditability, and predictability from their data, while giving
insights to their partners and suppliers through a controlled,
distributed ledger that is immutable and can be trusted by all
parties.
About Knowmadics
Knowmadics (www.knowmadics.com) created and
markets security capabilities through its patented 360° Aware
Platform and 360° Aware Mobile Apps (IoS and Android). The 360°
Aware Web and Mobile technologies are Software as a Service
(“SaaS”) offerings to commercial and government organizations for
enterprise visibility, asset and device location, remote device
management, tracking and workforce security. Its patented platform
bridges the white space between current ERP systems and IoT devices
and makes data “actionable” for loaction, tracking, operations
planning, logistics, and incident response. Users of Knowmadics’
technology can see, locate, link, and remotely control new and
legacy devices.
The company has a global customer base
consisting of government organizations and corporations.
Knowmadics’ major customers include defense, law enforcement
agencies and several companies in the critical infrastructure
sector. Its proprietary IoT technology provides critical
interoperability and enterprise workforce transformation, secure
supply chain solutions and enables customers to automate enterprise
situational awareness (SA).
Knowmadics’ serves its customers through several
products and services offerings. Knowmadics’ core product offerings
were designed to universally and globally track objects and people.
Knowmadics’ 360° Aware® platform, its flagship offering consists of
both web and mobile (iOS and Android) applications. 360° Aware
combines several applications and capabilities into one highly
configurable technical offering. 360° Aware allows a smartphone
to record audio and/or video and log GPS positions for later
retrieval, while simultaneously transmitting audio, video and
location data to multiple users via web or live link technology.
When utilized together, these powerful software products
enable end users to track, collect, report, and share
information that can enhance tactical decision-making and
response. The platform can also remotely manage ecosystems of
disparate devices—smartphones, GPS trackers, cameras, and radios,
access last known location data, device logs, perform remote
configuration, and more.
The Knowmadics platform is a device-agnostic
geolocation tracking solution designed to provide insights in
complex operating environments. It provides both full situational
awareness and command and control. Users can share locations and
can configure automated workflows for geofences, points of
interest, and routes. Operators can collaborate with secure chat
and using a companion mobile application can geolocate and track a
mobile user’s devices.
Knowmadics’ solutions are designed for the
complex and operationally critical collection of accurate field
data in near-real-time, which allows organizations to keep field
operations synchronized with headquarters operations during
critical operations. The companion mobile app allows customers to
collect accurate field data (photos, video, and audio) that can be
streamed and/or collected locally.
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, CFA Vice President, The Equity
Group Inc. jhellman@equityny.com(212) 836-9626
WaveDancer (NASDAQ:WAVD)
Historical Stock Chart
From Aug 2024 to Sep 2024
WaveDancer (NASDAQ:WAVD)
Historical Stock Chart
From Sep 2023 to Sep 2024