OTTAWA -- March Networks, a provider of Internet Protocol (IP)-based digital video surveillance solutions, said that it has entered into a definitive agreement to acquire the assets of Trax Retail Solutions Inc. and its affiliated company. Scottsdale, Ariz.-based Trax is a provider of enterprise software for loss prevention, store operations control and profit optimization solutions within the retail sector.
The agreement calls for the payment by March Networks of cash and common shares for a total purchase price of approximately $7.5 million (U.S.) [image-nocss] plus an earn-out component. Under terms of the agreement, March Networks will pay $5 million (U.S.) in cash and have the option of paying the remaining amount in cash or common shares.
The agreement is subject to customary closing conditions and is expected to close by the end of June 2006. March Networks said it plans on maintaining a presence in Scottsdale and retaining many of the approximately 50 Trax employees.
"This is a strategic acquisition for March Networks. The industry's leading provider of digital video solutions combined with the leader in retail loss prevention, risk management and business optimization software will make for an extremely compelling offer for progressive retailers looking to improve their bottom line," said Peter Strom, president and CEO of March Networks, Ottawa, Ontario, Canada. "The acquisition of Trax is an important step towards our goal of becoming the world leader in video-based business optimization solutions.
Tony Jenkins, vice president of global marketing at March Networks, said, "Through the integration of March Networks' visual intelligence solutions and Trax SmartStore retail business intelligence platform, March Networks will be offering customers a new paradigm in intelligent management of retail operations to support loss prevention activities, enhanced operational decision making and greater profitability.
For fiscal year 2007, March Networks said it expects that the Trax acquisition will contribute less than 5% of the total revenue of the company and will be slightly dilutive to net earnings, excluding the impact of the amortization of acquired assets.
Click here to view an overview presentation of the joint March Networks and Trax solution.
www.marchnetworks.com/news/marchnetworkstrax1.pdf.
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