DecisionPoint Adds Apex
Ken Nagy, CFA
DecisionPoint Systems, Inc. (
an enterprise mobility and RFID systems integrator, reported that
in an effort to expand its mobility and logistics opportunities,
the Company acquired the Burlington, Ontario, Canada based supplier
of wireless mobile work force solutions, Apex Systems Integrators
The purchase price was $5.0 million in cash at closing. In
addition, there is an earnout and bonus capped at an additional
$8.5 million, which is dependent upon future performance through
July 31, 2015. The transaction is expected to be accretive to
DecisionPoint's fiscal year 2012 earnings by $0.15 per share on an
Servicing clients in the consumer packaged goods, retail, B2B and
service sector, Apex has enjoyed an approximately 55 percent per
annum growth over the past five years, growing normalized EBITDA
from roughly CAD $0.5 million in 2007 to approximately CAD $1.8
million during the full year ended July 31, 2010.
The Company's APEXWare™ suite of products provides mobile
productivity solutions in the areas of merchandizing, sales and
delivery, field service, logistics and transportation, and
Furthermore, Apex's software product set is anticipated to fit
directly with DecisionPoint's own retail, field force mobility,
warehousing, logistics and transportation markets and to provide
opportunities for cross selling by both companies' teams.
Likewise, the acquisition is projected to shift DecisionPoint's
revenue mix by approximately 500 basis points towards software and
services and to improve the Company's average gross margins by
approximately 300 basis points.
With premium mobile data applications estimated to have generated
carrier revenues of over $2.3 billion in 2008 and expected to grow
at a CAGR of 35 percent or to as much as $10.3 billion in 2013,
Apex's strong presence in Canada enables DecisionPoint to fill out
its North American geographic service presence in another important
growing market as well as meet the Company's requirements of
quality of skills and dedication and commitment to sell and deliver
the best possible mission critical solutions.
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