$2.5M FUNDING FROM IBM GLOBAL- Receives $2.5 Million Funding From IBM
Tuesday August 7, 3:00 am ET
SANTA MONICA, CA--(MARKET WIRE)--Aug 7, 2007 -- Inova (OTC BB:IVTH.OB - News) and Desert Communications have signed definitive agreements with IGF (IBM Global Finance) that will provide $2.5 million of debt funding to Inova and Desert Communications.
The funding from IBM will be used to assist with the acquisition of Desert Communications in addition to providing ongoing working capital.
CEO of Inova Technology, Mr. Adam Radly, said, "The funding from IBM is a strong vote of confidence for both Inova and Desert Communications. We've made a lot of progress over recent months and we're very pleased that this progress has put us in a position where we can attract funding from IBM."
On August 1, 2007, Inova announced that it signed a definitive agreement to acquire Texas based Desert Communications for $5.5 million. This transaction is an acquisition and not a merger and the sellers of Desert will not be receiving any stock as part of the transaction.
For the year ended December 2006, Desert generated revenue of $13 million and EBITDA of $1.8 million. Desert provides IT services to a customer base that primarily consists of Texas-based school districts, local government entities and corporations.
Inova will pay $3 million cash on closing and a $2.5 million note payable over three years. The transaction is expected to close during the month of August, 2007. Inova will not be issuing stock to the sellers of Desert as part of the transaction.
Inova and Desert have been developing three RFID pilots together for schools, prisons and libraries. The first uses Inova's RFID technology to assist libraries convert from bar code systems to RFID systems. The second allows prisons to track prisoners. The third allows schools to track high value equipment and give students automated access to specific areas.
Veni, Vidi, Vici 
