|
Newsletters
|
|
|
|
|
|
WirelessDevNet.com Press Release
Digital Dispatch Releases MobiSoft Acquisition Report
Richmond, BC - January 17, 2008 – Digital Dispatch Systems Inc. (TSX: DD) announced that it has released the Business Acquisition Report (“BAR”) for its previously announced acquisition of Mobisoft OY (“Mobisoft”), a growing and profitable international Finnish software company specializing in application service provider (“ASP”) oriented automated dispatching and wireless data transfer applications for passenger transport which has been filed on www.sedar.com.
For the year ended September 30, 2007, Mobisoft reported total revenue of €4.1 million with net income of €636,000 under Finnish generally accepted accounting principles representing a 55% increase in revenues over the prior year ended September 30, 2006 of €2.6 million. The majority of Mobisoft’s revenue is recurring in nature and attributable to its ASP fleet management and dispatch services. The total consideration for the transaction is reported at $7.7 million consisting of $4.2 million in cash and 1.28 million common shares issued from treasury valued at $3.1 million and estimated acquisition costs of $362,000 resulting in a revenue multiple of 1.3 paid by Digital Dispatch for this strategic acquisition based on a foreign exchange rate of 1.4164 CDN$ per Euro.
According to Vari Ghai, CEO of Digital Dispatch, "We look forward to monetizing the strong synergies between Digital Dispatch and this growing, profitable software company. The proven hosted ASP recurring revenue model of Mobisoft provides us with the ideal solution to address this huge opportunity in North America. With Digital Dispatch's strong brand recognition in taxi and Mobisoft's proven product offering, we expect to quickly exploit this exciting opportunity."
As a subsidiary of Digital Dispatch on a going forward basis, MobiSoft will change its year end from September 30th to December 31st to be consistent with Digital Dispatch’s fiscal year end. With an effective date of October 1, 2007, the financial results of Mobisoft will be included in Digital Dispatch’s consolidated financial results commencing with the three months ended December 31, 2007.
About Digital Dispatch Systems Inc.
Digital Dispatch Systems Inc. is a worldwide provider of mobile data solutions for fleet and mobile workforce management. Founded in 1987, we have an installed base of more than 75,000 wireless mobile data devices and nearly 200 wireless data systems in five continents. We offer products and services to manage vehicle fleets and mobile workforces, including dispatch software, wireless communication infrastructure and a range of in-vehicle mobile devices. Visit www.digital-dispatch.com for more information.
|
|
|
