By M. Marin
Data443, a wholly owned subsidiary of LandStar, Inc. (OTC:LDSR), is a technology company that is conducting an aggressive M&A campaign and forging partnerships to complement its internally developed technologies. Data443 recently completed the acquisition of DataExpress™, a company that management describes as having a long-term, proven track record of innovation and success that will strengthen Data443's core offerings and help expand its customer base.
The DataExpress acquisition.is another example of the company moving its growth strategy forward. The transaction is accretive. DataExpress generates more than $1.4 million in revenue and more than $0.8 million of adjusted cash flows annually.
Data443 also continues to launch new products and services through organic development or acquisitions and partnerships. For instance, in February 2019, the company signed a two-year exclusive partnership agreement with ArcMail, which Data443 expects to contribute revenue of about $2 million over the next year. Since the partnership started, ArcMail has won two significant contract wins or renewals. On April 1, 2019, Data443 announced that ArcMail had renewed a contract for a growing US-based hospital and clinics network and on April 15, 2019, Data443 closed its first deal for hybrid cloud ArcMail archiving services.
To support its acquisition strategy, Data443 also intends to implement a reverse stock split to make it easier for the company to access the capital markets, pending regulatory approval. The company recently completed the refinancing of existing debt at extended terms and also obtained agreements from its note holders not to convert debt-to-equity before March 31, 2020.
SUBSCRIBE TO ZACKS SMALL CAP RESEARCH to receive our articles and reports emailed directly to you each morning. Please visit our website for additional information on Zacks SCR.
DISCLOSURE: Zacks SCR has received compensation from the issuer directly, from an investment manager, or from an investor relations consulting firm, engaged by the issuer, for providing research coverage for a period of no less than one year. Research articles, as seen here, are part of the service Zacks provides and Zacks receives quarterly payments totaling a maximum fee of $30,000 annually for these services. Full Disclaimer HERE.