DecisionPoint Announces Acquisition of Macro Integration Services

Rhea-AI Summary

DecisionPoint Systems, Inc. (DPSI) has acquired Macro Integration Services, enhancing its enterprise mobility services. While the deal's financial terms remain undisclosed, it is expected to contribute over $10 million in revenue and $1 million in Adjusted EBITDA for the remainder of 2023. The acquisition aims to strengthen DPSI's presence in traditional retail, food service, and grocery sectors, and bolster service capabilities including digital signage. This strategic move is anticipated to foster synergies and expand operations, particularly in the Southeastern U.S., adding significant warehousing capacity.

Positive

• Expected to add over $10 million in revenue and $1 million in Adjusted EBITDA in 2023.
• Expands service offerings, with services constituting 70% of Macro's 2022 revenue.
• Enhances penetration in traditional retail and adjacent verticals like food service.
• Promotes cross-selling opportunities and operational synergies.

Negative

• None.

DELRAY BEACH, Fla.--(BUSINESS WIRE)-- DecisionPoint Systems, Inc. (NYSE American: DPSI), a mobility-first enterprise services and solutions company, today announced it has acquired privately-held Macro Integration Services, based in Greensboro, North Carolina. The terms of the deal were not disclosed.

Steve Smith, CEO of DecisionPoint, commented: “The acquisition of Macro is right on target with our key strategic priorities, including increasing margins through adding more services, expanding our regional presence, and adding new capabilities and deepening existing ones. This immediately accretive acquisition also strengthens our position in the traditional retail market while adding to adjacent retail verticals in food service and grocery.”

Key Acquisition Highlights

• Immediately accretive
  • Expected to add $10+ million in revenue and $1+ million in Adjusted EBITDA during the remainder of 2023
• Increases mix of services and adds new solutions
  • Services represented approximately 70% of Macro’s revenue in 2022
  • Adds capabilities for digital signage and video systems
  • Complementary offerings in point of sale, payments, mobility and self-service
• Strengthens DecisionPoint’s position in the broader retail industry
  • Deepens penetration of traditional retail and hospitality verticals
  • Adds food service vertical
  • Scales grocery, QSR (quick-service restaurants) and C-store (convenience stores) verticals more quickly
• Synergies
  • Expansion of services into the Southeastern region of the U.S.
  • Adding significant warehousing capacity on the East Coast
  • Cross-selling opportunities

”We are thrilled to join with DecisionPoint,” said Terry Morgan, CEO of Macro Integration Services. “Our two companies are complementary from a cultural, geographic and market perspective and the opportunity to cross-sell can drive long-term synergies. We look forward to working closely with Steve and his team to drive growth of the combined enterprise.”

About DecisionPoint Systems

DecisionPoint Systems Inc. delivers mobility-first managed service and integration solutions to healthcare, supply chain, and retail customers, enabling them to make better and faster decisions in the moments that matter—the decision points. Our mission is to help businesses consistently deliver on those moments—accelerating growth, improving worker productivity, and lowering risks and costs. For more information about DecisionPoint Systems, Inc., visit https://www.decisionpt.com.

Forward-Looking Statements

In this press release, all statements that are not purely about historical facts, including, but not limited to, those in which we use the words "believe," "anticipate," "expect," "plan," "intend," "estimate, "target" and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors, including, but not limited to, those described in our most recent report on SEC Form 10-K (under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations"), which may be revised or supplemented in subsequent reports on SEC Forms 10-Q and 8-K. We are under no obligation, and expressly disclaim any obligation, to update the forward-looking statements in this press release, whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230403005361/en/

Investor Relations Contact:

Brian Siegel, IRC, MBA

Senior Managing Director, Hayden IR

(346) 396-8696

Brian@haydenir.com

Source: DecisionPoint Systems, Inc.

FAQ

What are the financial expectations from the DPSI and Macro Integration Services acquisition?

The acquisition is expected to generate more than $10 million in revenue and $1 million in Adjusted EBITDA for the remainder of 2023.

How will the acquisition of Macro Integration Services impact DecisionPoint's market position?

The acquisition enhances DPSI's position in traditional retail and expands its reach into the food service and grocery sectors.

What new services will DecisionPoint integrate following the acquisition?

DPSI will add capabilities for digital signage and video systems, complementing existing services in point of sale and mobility.

Where will DecisionPoint expand its operations after acquiring Macro Integration Services?

DPSI plans to expand its operational footprint in the Southeastern region of the U.S.