TORONTO, Ont. — AirIQ has inked a team to acquire Aircept.com LLC, a U.S. provider of Telematics services with more than 80,000 active subscribers.
Aircept has signed on more than 15,000 new subscriber units in the first quarter of 2004 alone and acquiring the company will triple AirIQ’s revenues, the company predicts.
“Such highly compatible business models make this an ideal combination,” says Don Simmonds, president and CEO of AirIQ. “It also signals our intent to lead a consolidation of the Telematics service industry.”
The deal is expected to close within several weeks and is valued at about $23,769,000. The deal will involve about $6.75 million in cash and the remainder in AirIQ shares.
“The operational management of Aircept has done an outstanding job,” Simmonds says. “The key to this particular combination is an expedited revenue trajectory without the proportionate future costs of independent operations. Through a careful and methodical process, over time we intend to integrate common costs and take advantage of increased purchasing power, all without distracting the excellent market momentum of either party.”
For his part, Kein Wiesner, president and CEO of Aircept, says: “The Aircept team has succeeded in its quest to build a company that is a dominant provider of core location-based services, and we believe the time has come to join forces with AirIQ, highly respected in our industry. Our team is excited to work shoulder to shoulder with AirIQ to increase our combined market effectiveness as Telematics hardware and service providers.”
Weisner will become president of the Aircept division of AirIQ USA. About 43 Aircept team members will be retained in California.
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