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$DNPI DecisionPoint Systems (OTCBB: DNPI) Buys CMAC For $3.15 Million
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Date: December 27, 2010 4:46 PM
Publisher: [e-mail]
Categories: US Markets
Tags: (OTCBB:DNPI), the equities group, equities, decision point, decision point systems, CMAC
DecisionPoint Systems (OTCBB: DNPI) Buys CMAC For $3.15 Million
DecisionPoint Systems (OTCBB: DNPI) Buys CMAC For $3.15 Million
In an effort consistent with the company’s long-term plans for growth and sustainability, DecisionPoint Systems today announced they have entered an agreement to purchase CMAC, Inc. for $3.15 million. Adding CMAC’s logistics consulting and systems integration services to the company’s diverse enterprise mobility and RFID product solutions gives DecisionPoint a competitive advantage boosted by an increase in their services and software revenue mix.
Headquartered in Alpharetta, Georgia, CMAC has been focused on delivering operational and technical supply chain solutions since 1996. The company provides industry specific know-how in mobile computing, wireless networking, and warehouse management software plus industry solutions for the entire supply chain from manufacturing to transportation management, and could add as much as $2.2 million to DecisionPoint’s top-line revenue for the full fiscal year 2010.
The purchase price of $3.15 million is to be paid 70% in cash and 30% in stock. The transaction, which is scheduled to close before the end of 2010, is expected to be accretive to DecisionPoint's 2011 earnings by $0.02 to $0.03 per share fully-diluted. For the 10 months ended October, 2010, CMAC reported revenue of $8.8 million and income from operations before taxes of $781,000. Approximately 40% of CMAC revenue is derived from the sale of software and services and 60% from the resale of hardware.
Bryan Moss, President of CMAC, will be appointed Senior Vice President, Professional Services of the combined company. "CMAC offers complementary services to similar end markets and is a good fit with DecisionPoint," said Nicholas Toms, CEO of DecisionPoint. The transaction could result in gross margin expansion of 100 to 200 basis points for 2011, and CMAC's strong presence in the Southeast fills the company’s target geographic service presence in the U.S.
CMAC’s customer base fits comfortably in with that of DecisionPoint’s base, offering a rich opportunity for cross-selling by each company’s sales team. DecisionPoint, which aims to deliver improved productivity and operational advantages to its clients, makes enterprise software applications accessible to the front-line worker anytime, anywhere.
In that, the two company’s business productivity solutions complement each other. CMAD provides their services to over 500 organizations in various industries and has evolved into a proven market leader.

http://www.worldmarketmedia.com/779/section.aspx/2833/post/decisionpoint-systems-otcbb-dnpi-buys-cmac-for-315-million

$DNPI DecisionPoint Systems (OTCBB: DNPI) Buys CMAC For $3.15 Million