ATLANTA, Feb. 19, 2013 /PRNewswire/ -- Numerex Corp (Nasdaq: NMRX), a leading provider of on-demand and interactive machine-to-machine (M2M) enterprise solutions, announced the acquisition of certain assets, technology, and intellectual property – including a portfolio of patents - that will support and widen its M2M platform capabilities in real-time monitoring of critical assets and events.
This acquisition consists of certain revenue-generating assets, including technology in IP and satellite communications, video services, and customer portal services that enhance interactive platform capabilities. It is expected that these added capabilities will rapidly expand Numerex's range of critical monitoring services, addressing the needs of several vertical sectors including remote monitoring and access control, alarm security, and emergency services.
Although the acquisition of assets includes an active base of customers that currently generate recurring revenue, its financial impact will be modest during 2013. Total consideration for the purchase, as previously disclosed, was $3.9 million that was allocated about evenly between goodwill and intangible assets. As a result, amortization charges will approximate $90,000 in the fourth quarter 2012 and $400,000 for the full year 2013. Fourth quarter 2012 general and administration expense will include an estimated $50,000 of acquisition-related costs. In addition, there will be $15,000 in interest charges included in the fourth quarter of last year and it is expected that $60,000 in annual interest charges will be incurred in 2013, as a result of the transaction structure that included approximately $2 million in seller-financing.
"We believe that these new assets and additional expertise will give Numerex customers a wider array of critical remote monitoring choices, and contribute to strengthening our leadership position in the M2M industry," said Mike Boyle, EVP of Operations at Numerex. "We will continue to target technology and talent-rich opportunities that will provide us with new capabilities to meet our customers' requirements and exceed their expectations."
With the newly acquired patented technology, Numerex's customers will gain access to a complementary set of options and technical support in broadband-based M2M application management, which leverages the pervasiveness of the Internet and Numerex's efficient solution development and deployment capabilities.
The technology enhancements, as they are incorporated into Numerex's M2M Service Delivery Platform, are designed to be sold by broadband service providers and others that plan to offer next generation M2M solutions to their customers. Users of Numerex M2M platforms will be able to remotely control their applications, view live video or event-driven video clips, and more from their iPhone, iPad, Android device, PC or Mac.
About Numerex Numerex Corp (NASDAQ: NMRX) is a leading provider of interactive and on-demand machine-to-machine (M2M) technology and services, offered on a subscription basis, used in the development and support of M2M solutions for the enterprise and government markets worldwide. The Company offers Numerex DNA® that may include hardware and smart Devices, cellular and satellite Network services, and software Applications that are delivered through Numerex FAST® (Foundation Application Software Technology). In addition, business services are offered to enable the development of efficient, reliable, and secure solutions while accelerating deployment. Numerex is ISO 27001 information security-certified, highlighting the Company's focus on M2M data security, service reliability, and round-the-clock support of its customers' M2M solutions. For additional information, please visit www.numerex.com.
© 2013 Numerex Corp. All rights reserved. Numerex, the Numerex logo and all other marks contained herein are trademarks of Numerex Corp. and/or Numerex- affiliated companies. All other marks contained herein are the property of their respective owners.
Statements contained in this press release concerning Numerex that are not historical fact are "forward-looking" statements and involve important risks and uncertainties. Such risks and uncertainties, which are detailed in Numerex's filings with the Securities and Exchange Commission, could cause Numerex's results to differ materially from current expectations as expressed in this press release. These forward-looking statements speak only as of the date of this press release, and Numerex assumes no duty to update forward-looking statements.
Numerex Corp Contact: Alan Catherall 770-485-2527
Investor Relations Contact: Seth Potter 646-277-1230
SOURCE Numerex Corp