SOURCE: DecisionPoint Systems, Inc.
IRVINE, CA--(Marketwire - Aug 6, 2012) - DecisionPoint Systems, Inc. (OTCBB: DPSI), a leading provider and integrator of Enterprise Mobility, Wireless Applications and RFID solutions, today announced that it has acquired Tulsa, OK based Illume Mobile Software ("Illume Mobile"), a division of MacroSolve, Inc. effective July 31, 2012.
The purchase price was $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 which 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. In addition, 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.
The Illume Mobile team led by Mark Jones and Brett Williams will be integrated into the DecisionPoint organization. Mark Jones will serve as DecisionPoint's Vice President, Professional Services reporting to Ralph Hubregsen, DecisionPoint's Chief Operating Officer. Brett Williams, who has been named Vice President, Professional Services Sales, will lead a team of sales and solution engineers and report to John Chis, DecisionPoint's Senior Vice President Sales and Marketing.
"The strategically important acquisition of Illume Mobile solidifies DecisionPoint's development and delivery capabilities in the growing Enterprise iOS and Android mobile software development markets," said Nicholas Toms, CEO of DecisionPoint. "Illume will also fill out our North American geographic service presence in the important growing market of the Southwestern United States. We welcome this talented team to DecisionPoint, and look forward to building significant shareholder value together."
"With the three acquisitions that we have completed over the last 19 months -- CMAC, Apex and Illume -- we have built a strong software and professional services group with capabilities to provide leading edge technology solutions and support for all of our customer installations," continued Mr. Toms. "Revenues from Professional Services and Software, including Illume, are expected to be in excess of 35% of total revenue going forward. This group also generates higher margins than other divisions in the company and most importantly, provides a clear competitive differentiator in the marketplace. With this acquisition, we now offer the full range of mobile solutions to meet the requirements of any enterprise mobility strategy."
Commenting on the transaction, Jim McGill, Executive Vice Chairman of MacroSolve, Inc., stated, "DecisionPoint Systems acquisition of the Illume Mobile division positions them to make exceptional mobile application offerings to their broad customer base. We are delighted to take a major portion of the purchase in shares of their common stock."
For additional information regarding the acquisition, please refer to DecisionPoint's 8-K to be filed with the Securities and Exchange Commission on or before August 6, 2012 and available at www.sec.gov.
About DecisionPoint Systems, Inc.
DecisionPoint Systems, Inc. (OTCBB: DPSI) delivers improved productivity and operational advantages to its clients by helping them move their business decision points closer to their customers. They do this by making enterprise software applications accessible to the front-line worker anytime, anywhere. DecisionPoint utilizes all the latest wireless, mobility, and RFID technologies. For more information on DecisionPoint Systems visit http://www.decisionpt.com/news.php.
Forward Looking Statements
Under The Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the statements in this news release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause a company's actual results, performance and achievement in the future to differ materially from forecasted results, performance, and achievement. These risks and uncertainties are described in the Company's periodic filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events or changes in the Company's plans or expectation.