Barcoding, Inc. and DecisionPoint Systems Merge to Create Business of Scale

Rhea-AI Summary

Barcoding and DecisionPoint Systems (DPSI) have merged, creating a new holding company, DecisionPoint Technologies. The merger, finalized on July 5, 2024, brings together the supply chain automation and POS technology capabilities of both companies, enhancing their market presence across North America. Barcoding specializes in supply chain optimization, while DPSI focuses on enterprise mobility solutions. This strategic union aims to offer expanded solutions and services to retail, supply chain, and other industries, leveraging their combined expertise. The new entity is expected to benefit from enhanced operational scale, geographic reach, and a stronger value proposition for OEM partners.

Positive

• The merger of Barcoding and DPSI creates a stronger market presence across North America, enhancing their ability to support enterprise-level customers.
• The combined entity is well-positioned to leverage increased adoption of automation and advanced POS technologies.
• Enhanced operational scale and geographic reach are expected to bolster the company's value proposition for OEM partners.
• The unified company can offer a broader suite of solutions and services, potentially increasing revenue opportunities.

Negative

• Potential integration challenges could disrupt operations and delay the realization of synergies.
• The merger may lead to financial strain due to the costs associated with integrating the two companies.

Insights

Financial Analyst

The merger between Barcoding, Inc. and DecisionPoint Systems, Inc. is a noteworthy event that can significantly impact both companies' financial standing and market position.

First, from a financial perspective, mergers often lead to cost synergies—where combined operations reduce expenses by eliminating redundant functions and leveraging economies of scale. This can positively impact profit margins. For instance, shared resources such as technology and infrastructure can lead to lower operational costs.

Additionally, the merger gives the combined entity a stronger market presence, enhancing its ability to negotiate better terms with suppliers and customers. This kind of strategic consolidation can lead to increased market share and potentially higher revenue streams.

Retail investors should consider the potential for short-term integration costs versus long-term financial benefits. While mergers can provide growth opportunities, they also come with risks like integration challenges and cultural mismatches, which can affect performance in the near term.

Market Research Analyst

From a market positioning perspective, this merger brings together two companies with complementary strengths in supply chain automation and enterprise mobility solutions.

The combined entity is now better positioned to capitalize on the increasing adoption of automation and advanced POS technologies. The expanded geographic footprint across North America allows the merged company to support enterprise-level customers more effectively, providing a broader range of solutions. This could enhance customer retention and attract new business.

Moreover, the focus on industries like retail, logistics and healthcare, which are poised for technological advancements, means that the unified company is operating in sectors with substantial growth potential.

Retail investors should note that the emphasis on innovation and customer experience can be a strong differentiator in the market, potentially leading to competitive advantages and long-term growth.

Tech Expert

This merger is particularly relevant in the context of technological innovation. Barcoding’s expertise in data capture, automation and mobile computing combined with DPSI’s focus on POS and enterprise mobility solutions, creates a tech-forward company capable of addressing complex supply chain challenges.

Technological convergence allows them to offer more integrated and efficient solutions, which is critical in sectors demanding real-time data analytics and automation. For instance, leveraging IoT/RFID technologies can significantly enhance supply chain visibility and efficiency. Enhanced connectivity and security are also vital factors that can drive customer trust and adoption of these solutions.

Retail investors should be aware that the success of this merger heavily depends on how well these technologies are integrated and how quickly they can innovate to stay ahead of the competition.

Combined capabilities provide market-leading supply chain automation and point-of-sale technologies across North America

PHILADELPHIA--(BUSINESS WIRE)-- Barcoding, Inc. (“Barcoding”), a provider of supply chain optimization and warehouse automation solutions, a portfolio company of Graham Partners (“Graham”), has merged with DecisionPoint Systems, Inc. (NYSE: DPSI; "DPSI"), unified under their new holding company DecisionPoint Technologies. A merger agreement was signed and announced earlier this spring and the transaction was completed on July 5, 2024.

Barcoding, a provider of supply chain automation and innovation, seeks to revolutionize global organizational efficiency, accuracy and connectivity. Headquartered in Baltimore, Maryland, the company leverages its experience in data capture, automation and mobile computing to deliver tailored solutions for complex supply chain challenges across industries, such as manufacturing, distribution, retail, and transportation and logistics.

Headquartered in Delray Beach, Florida, DPSI is an integrator of enterprise mobility solutions and managed services focused on the deployment and management of data capture and point-of-sale ("POS") technologies within retail, logistics and healthcare end markets. DPSI occupies an adjacent area of Barcoding's current market, which may benefit from increasing adoption of automation and advanced POS technologies over the coming years.

With the combined capabilities resulting from the merger, the unified Barcoding and DPSI is well positioned as a solutions-focused integrator capable of supporting advanced deployment, integration and services across enterprise mobility, IoT/RFID and POS technologies. Further, the added scale and expanded geographic presence across North America should allow the unified business to better support enterprise-level customers across a broad range of industries and solution needs, as well as further bolster its value proposition with OEM partners.

Mike Stewart, Principal at Graham Partners, said "We believe this merger will be transformative for our investment in Barcoding and is underpinned by our continued belief in the value proposition of enterprise mobility integrators supporting trends towards increasing levels of automation and proliferation of traceability technology." He continued, "We look forward to integrating these two businesses and developing a leading platform in the enterprise mobility industry."

"We're thrilled to unite Barcoding and DecisionPoint, bringing together our passion for innovation and customer experience,” said Shane Snyder, CEO of Barcoding, Inc. “This merger allows us to offer our enterprise customers an expanded, cutting-edge suite of solutions and services that spans retail, supply chain and beyond. Together, we're not just growing—we're reimagining what's possible in our industry, and we look forward to showing our customers the enhanced value and service that we believe this partnership will bring."

"The merger of DecisionPoint and Barcoding creates a powerhouse that combines decades of industry experience, high quality service offerings and a strong leadership team”, said Steve Smith, CEO of DecisionPoint. “Our shared cultures of respect and candor not only fosters talent retention and growth, but also enables us to innovate and adapt to these changing times to better serve our customers. We believe we’re positioned to achieve greater scale, yet small enough to remain nimble.”

About DPSI

DPSI is an integrator of enterprise mobility solutions and services focused on providing deployment, integration and support services for essential retail, foodservice, supply chain, healthcare, hospitality, and other verticals utilizing data capture and POS technologies, enabling customers to make better and faster operational and business decisions.

About Barcoding

Barcoding is a supply chain automation and innovation company that helps organizations be more efficient, accurate, and connected. With our enterprise platform IntelliTrack® and extensive subject matter expertise in data capture and automation, labels and printing, connectivity and security, and mobile computing, we are trusted to build and manage solutions for some of the best IT and operations teams in the world. Founded in 1998, Barcoding is headquartered in Baltimore, MD, with offices across North America (Philadelphia, Chicago, Houston, Seattle, Montreal, Toronto, and Vancouver). For more information, visit www.barcoding.com.

About Graham Partners

Graham Partners is a private investment firm focused on investing in technology-driven companies that are spurring innovation in advanced manufacturing, resulting in product substitutions, raw materials conversions, and disruptions to traditional end markets. Graham Partners can offer control or minority capital solutions and typically targets companies with EBITDA up to $50 million. Since the firm's founding in 1988 by Steven Graham, Graham Partners has closed over 160 acquisitions, joint ventures, financings, and divestitures. The committed capital raised since inception through the Graham Partners funds together with Graham-led co-investments totals approximately $6.2 billion as of March 31, 2024, pro forma for subsequent events, which differs from Graham’s Regulatory Assets Under Management of approximately $3.7 billion as of March 31, 2024. Investors include high-net-worth individuals, college and university endowments, foundations, pension plans, insurance companies, funds-of-funds, and other institutional investors. Based in suburban Philadelphia, the firm has access to extensive operating resources and industrial expertise and is a member of The Graham Group, an alliance of independent operating businesses, investment firms and philanthropic entities, which all share in the common legacy of entrepreneur Donald Graham.

Legal Disclaimer

This press release is for informational purposes and is not an offer to sell, or a solicitation of an offer to buy, securities in the United States or elsewhere. Graham Partners is not utilizing this release to provide investment or other advice, and no information disclosed therein is to be relied upon for the purpose of making investment decisions. Past performance does not guarantee future results and any transactions described are included as representative transactions and are not necessarily reflective of overall performance. It should not be assumed that any investment described herein was or will be profitable. There can be no assurance that historical trends will continue. Graham Partners' market characterization is based on subjective determinations that it believes reasonable but others may disagree with such characterization. There is no guarantee that Graham Partners' initiatives will drive value for its investments or accelerate growth or lead Graham Partners' investments to become profitable.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240708124202/en/

Lindsey Young

205-616-7848

lyoung@theblissgrp.com

Source: Barcoding, Inc. and DecisionPoint Systems, Inc.

FAQ

What companies merged to form DecisionPoint Technologies?

Barcoding and DecisionPoint Systems (DPSI) merged to form DecisionPoint Technologies.

When was the merger between Barcoding and DecisionPoint Systems (DPSI) completed?

The merger was completed on July 5, 2024.

What is the strategic importance of the Barcoding and DPSI merger?

The merger aims to enhance market presence across North America and offer expanded supply chain automation and POS technology solutions.

How will the merger between Barcoding and DPSI impact their customers?

Customers can expect a broader suite of solutions and services, leveraging the combined expertise of both companies in supply chain automation and enterprise mobility.

What are the anticipated benefits of the Barcoding and DPSI merger for shareholders?

Shareholders may benefit from the enhanced operational scale, geographic reach, and potential revenue growth opportunities resulting from the merger.

What are some potential challenges of the Barcoding and DPSI merger?

Potential integration challenges and financial strain due to the costs associated with merging the two companies are notable concerns.