DecisionPoint builds a Strong Software and Professional Services Group
DecisionPoint builds a Strong Software and Professional Services Group
Ken Nagy, CFA
On August 6, 2012, DecisionPoint Systems, Inc. (DPSI), the Foothill Ranch, California based enterprise mobility and RFID systems integrator, reported that effective, July 31, 2012, it acquired Illume Mobile Software (“Illume Mobile).
The Tulsa, OK based Illume Mobile, a division of MacroSolve, Inc., was purchase for a price of $1.0 million of which $250,000 was paid in cash at closing.
The balance of $750,000 was paid with the issuance of 617,284 shares of DecisionPoint common stock. It should be noted that the amount of shares issued was based upon the weighted average closing price of the Company’s stock of $1.215 for the 20 trading days prior to July 31, 2012.
Similarly, the terms of the purchase agreement call for potential additional consideration of up to $500,000, payable 50% in cash and 50% in stock, the amount of which will be determined by the achievement of specific net revenue targets by Illume Mobile through July 31, 2013.
Illume Mobile has patent protected domain expertise in developing Enterprise mobile software for Android and Apple (iOS) mobile devices which helps solidify DecisionPoint’s development and delivery capabilities in this expanding mobile software development markets.
Moreover, the acquisition allows the Company to offer the full range of mobile solutions to meet the requirements of any enterprise mobility strategy as well as fill out the Company’s North American geographic service presence in the growing Southwestern United States market.
Likewise, through its three acquisitions over the past 19 months (CMAC, Apex and Illume) , DecisionPoint has built a strong software and professional services group with capabilities to provide leading edge technology solutions and support for all of the Company’s customer installations.
It’s important to note that going forward; management expects revenues from Professional Services and Software, including Illume, to be in excess of 35 percent.
Furthermore, this group generates higher margins than other DecisionPoint divisions as well as provides a clear competitive differentiator in the marketplace.
The Illume Mobile team will be led by Mark Jones and Brett Williams. Mark Jones will serve as DecisionPoint’s Vice President, Professional Services while Brett Williams, who will lead a team of sales and solution engineers, has been named Vice President, Professional Services Sales.
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