Route1 Acquires DataSource Mobility
Route1 Inc (OTCQB:ROIUF) announced the acquisition of DataSource Mobility for U.S. $1.3 million in cash, enhancing its market presence in Texas and expanding into sectors such as public safety and logistics. The deal includes a profit-sharing agreement, with thresholds set at U.S. $375,000 for 2021 and U.S. $500,000 for 2022. Route1 also reported a gross profit increase from $0.40 million to $0.49 million in the fiscal year 2020, while its revenue rose from $4.21 million to $5.10 million. This acquisition is strategically aligned with Route1's growth objectives.
- Acquisition aligns with Route1's expansion into the Texas market.
- Enhances enterprise and public safety accounts in key sectors.
- Opportunity to grow sales team and leverage mobile device sales.
- None.
Route1's PCS Mobile Named Genetec™ AutoVu™ Premier Partner of the Year
TORONTO, ON / ACCESSWIRE / March 29, 2021 / Route1 Inc. (OTCQB:ROIUF) and (TSXV:ROI) (the "Company" or "Route1"), an advanced North American provider of data-centric business empowerment solutions, today announced that it has acquired DataSource Mobility, LLC and its wholly owned subsidiary, VetSource Mobility, LLC (collectively "DSM").
Founded in 2007 by William Presler, DSM, operating as DataSource Mobility, is primarily a reseller of ruggedized tablets and laptops along with associated accessories. DSM offers guidance and state-of-the-art mobile devices for a wide range of sectors including public safety, utilities, field services, logistics and healthcare as well as state and local governments.
DSM is located in located in Clarksville, Tennessee and serves markets in the Southeastern United States including Alabama, Missouri, Tennessee and Texas. Route1 paid U.S.
Route1 has also agreed to share with DSM's prior owners the gross profit generated by defined DSM accounts once the actual gross profit exceeds a threshold for the balance of the 2021 calendar year and 2022 calendar year. The threshold is U.S.
In millions of US dollars | FY 2019 | FY 2020 |
Revenue | ||
Gross Profit |
Note: The numbers presented above are unaudited. DSM's fiscal year end is December 31st.
On closing, Route1 acquired net working capital of approximately U.S.
Route1 is acquiring DSM for the following reasons. The acquisition:
- accelerates Route1's planned expansion of its business model into Texas, a strong and growing market;
- grows our key enterprise and public safety accounts in the energy, logistics and local government sectors;
- provides us with the opportunity to add to the size and quality of our sales team; and
- allows us to leverage DSM's current and future sales of rugged mobile devices to expand Route1's profitable field service installation business providing customers with end-to-end service including configuration, asset tagging and vehicle installation.
Genetec AutoVu Premier Partner of the Year
Earlier this month, Route1's wholly owned subsidiary PCS Mobile was been named "AutoVu™ Premier Partner of the Year - USA" by Genetec Inc.. This is the fifth consecutive year PCS Mobile has won the award.
Warrant Exercise
On March 19, 2021 the holder of 3,000,000 Route1 common share purchase warrants issued by Route1 on March 22, 2018 with an exercise price of
After the cashless warrant exercise described above, Route1 has outstanding: 40,049,463 common shares; 3,574,411 common share purchase warrants expiring June 16, 2022 with a Canadian dollar
Route1 Inc. is an advanced North American technology company that empowers their clients with data-centric solutions necessary to drive greater profitability, improve operational efficiency and gain sustainable competitive advantages, while always emphasizing a strong cybersecurity and information assurance posture. Route1 delivers exceptional client outcomes through real-time secure delivery of actionable intelligence to decision makers, whether it be in a manufacturing plant, in-theater or in a university parking lot. Route1 is listed on the OTCQB in the United States under the symbol ROIUF and in Canada on the TSX Venture Exchange under the symbol ROI. For more information, visit: www.route1.com.
For More Information, Contact:
Tony Busseri
President and Chief Executive Officer
+1 480 578-0287
tony.busseri@route1.com
This news release, required by applicable Canadian laws, does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
© 2021 Route1 Inc. All rights reserved. No part of this document may be reproduced, transmitted or otherwise used in whole or in part or by any means without prior written consent of Route1 Inc. See https://www.route1.com/terms-of-use/ for notice of Route1's intellectual property.
This news release may contain statements that are not current or historical factual statements that may constitute forward-looking statements or future oriented financial information. These statements are based on certain factors and assumptions, including, expectations regarding the success of the private placement and the terms on which the Company will raise funds, price and liquidity of the common shares, expected financial performance, expected subscribers and subscription-based revenue, business prospects, technological developments, development activities, the ability of the Company to obtain the supersedeas bond in order to appeal the decision to the United States Court of Appeals for the Federal Circuit, and like matters. While Route1 considers these factors and assumptions to be reasonable, based on information currently available, they may prove to be incorrect. These statements involve risks and uncertainties, including but not limited to the risk factors described in reporting documents filed by the Company. Actual results could differ materially from those projected as a result of these and other risks and should not be relied upon as a prediction of future events. The Company undertakes no obligation to update any forward-looking statement or future oriented financial information to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events, except as required by law. Estimates used in this presentation are from Company sources. Past or forecasted performance is not a guarantee of future performance and readers should not rely on historical results or forward-looking statements or future oriented financial information as an assurance of future results.
SOURCE: Route1 Inc.
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FAQ
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What are the profit-sharing details of the Route1 and DataSource Mobility acquisition?
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