ST. PETERSBURG, Fla., July 5, 2011 /PRNewswire/ -- INFRAX SYSTEMS, Inc. (OTC BB: IFXY), a global provider of unified Smart Grid-related products and services for the Energy and Utility industries, announced today that it has entered into an agreement to acquire Southern Power & Controls (SPC), a privately-held electrical contractor, and recognized leader in providing mission critical control applications for utility, industrial and security applications.
Under the terms of the agreement, INFRAX Systems will acquire Southern Power & Control for approximately $4.9M mostly in cash, plus a combination of notes and stock at closing. INFRAX will continue to support Southern Power & Control's customer base and expand their offerings to include the implementation of INFRAX's smart grid product portfolio.
Highlights of the transaction include:
- Generated revenue in excess of $22,000,000 in 2010
- Generated average revenue of over $18,000,000 per year in past 5 years
- 17-year track record of consistent growth and profitability
- Considered to be the premier complex electrical systems contractor in the Southeast
- Adds high voltage and substation certification to INFRAX's technical workforce
- Outstanding performance reputation with water utilities and treatment facilities
"SPC is a recognized leader in the implementation of complex performance critical systems and has an impressive track record of operational and financial performance with over 15 years of increasing profitability. Their established customer relationships make them a perfect addition to the INFRAX Family particularly at the moment smart grid technology is on the top of the utility industry agenda," said Paul J. Aiello, CEO of INFRAX Systems. "Their reputation and experience will enable us to expand our relationships with electric utilities and their experience with water and gas utilities will open additional markets for our security and communications solutions."
The SPC technical team's expertise in the implementation and maintenance of complex electrical and control systems will significantly augment INFRAX's technical capabilities, especially as it relates to switchyards, substations and distribution systems. Management of the combined Companies will include executives from both organizations. Southern Power & Control's 2010 revenues exceeded $22M, with forecasted 2011 design and construction revenues expected to equal 2010 revenues, on a standalone basis and has a significant backlog of committed infrastructure contracts extending well into 2012. INFRAX anticipates significant revenue growth as a result of adding SPC's design and installation capabilities to our Secure Intelligent Energy Platform.
"We are excited about the opportunity to join the INFRAX team and further expand our portfolio to include the implementation of their smart grid and communications solutions. The relationships we have built over the last 17 years should be a terrific inroad for INFRAX to sell their smart grid portfolio," said William Barry, Founder & CEO of SPC. "INFRAX's commitment to securing the energy grid and their corporate values match well with the culture we have built at SPC."
Founded in 1994, SPC is a eighty employee, full-service electrical contracting firm, headquartered in Tampa Florida, providing consulting, project management, design, installation and maintenance services to a broad array of customers. Major clients include Tampa Bay Water, General Electric, Lockheed Martin, Orlando Regional Utilities, Convanta Energy, Ohio Transformer, Ring Power, Ballast Needham and Siemens. Additionally, SPC has implemented baggage handling control and security systems for Boston's Logan International Airport Delta Terminal, Fort Lauderdale International Airport, Southwest Florida International Airport, Tampa International Airport and the Port of Tampa.
"We are continuing to execute on our strategy to augment our organic growth through targeted acquisitions. We recently completed the acquisition of controlling interest in Lockwood Technologies, a leading Asset Management and RFID solutions provider and have begun the process of integrating Lockwood's capabilities into our portfolio. Our agreement with SPC is further evidence of our commitment to become a global leader in smart grid security and communications solutions," added Aiello. "While we continue to be presented with acquisition opportunities, we are prioritizing our efforts on closing those which bring the greatest value to our shareholders. To that end, we have placed several other pending acquisitions, including BSI, on the back burner to focus our efforts on completing the transaction with SPC."
Additional financial details of the transaction will be disclosed with the completion of the acquisition or when available.
About Southern Power & Controls
Southern Power & Controls is a privately-held electrical contractor providing advanced technology, progressive management and ethical client relationships. SPC has become Southeast's preferred electrical contractor, provides performance-critical applications specializing in technical consulting, electrical maintenance services, control systems, purchasing, project management and construction. SPC has also been recognized as the Tampa Bay Business of the Year.
From Boston's Logan International Airport to U.S. Sugar, Southern Power & Controls is a highly experienced electrical contractor with a proven record of delivering the service you deserve with the skill and craftsmanship your project demands. Southern Power & Controls' commitment to excellence and integrity sets new standards for client satisfaction and loyalty.
For more information visit: www.southernpower.net
About INFRAX Systems
INFRAX Systems offers a series of interrelated operational management, communications, and grid security related products and services known as Secure Intelligent Energy Platform (SIEP). Our products enable a comprehensive and unified solution for communications and applications management of the Smart Grid. SIEP™ incorporates a wide array of communications, security, device and data management tools for Smart Grid applications such as advanced metering solutions and grid optimization. SIEP platform creates a unified solution to securely manage Advanced Metering Infrastructure (AMI) and distribution automation. INFRAX's secure smart grid platform, incorporates a communications transport and management system, (Grid Mesh™), device and data security management, and ultimately secures intelligent endpoint devices (SIED). The secure management of the "last mile" backhaul will be necessary for utilities to implement Smart Grid applications including AMI, real-time pricing, Demand Side Management (DSM), Distribution Monitoring and Automation. When combined, these applications can offer economic, operational and environmental benefits for utilities, and ultimately the utility's customers.
This press release may contain forward-looking statements covered within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to, among other things, plans and timing for the introduction or enhancement of our services and products, statements about future market conditions, supply and demand conditions, and other expectations, intentions and plans contained in this press release that are not historical fact and involve risks and uncertainties. Our expectations regarding future revenues depend upon our ability to develop and supply products and services that we may not produce today and that meet defined specifications. When used in this press release, the words "plan," "expect," "believe," and similar expressions generally identify forward-looking statements. These statements reflect our current expectations. They are subject to a number of risks and uncertainties, including, but not limited to, changes in technology and changes in pervasive markets.
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