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Route1 Signs Definitive Agreement to Acquire Group Mobile
Mar. 08, 2018 08:57AM PST
Data Investing
Route1 (OTCQB:ROIUF; TSXV:ROI) has announced it has entered into an agreement to acquire Group Mobile Int’l LLC. As quoted in the press release: Group Mobile, a wholly owned subsidiary of XpresSpa Group, based in Chattanooga, TN and Chandler, AZ supplies rugged mobile technology solutions to a number of the world’s largest automotive manufacturing companies and …
Route1 (OTCQB:ROIUF; TSXV:ROI) has announced it has entered into an agreement to acquire Group Mobile Int’l LLC.
As quoted in the press release:
Group Mobile, a wholly owned subsidiary of XpresSpa Group, based in Chattanooga, TN and Chandler, AZ supplies rugged mobile technology solutions to a number of the world’s largest automotive manufacturing companies and suppliers, the world’s largest manufacturing company, as well as local and state governments in the southeastern and southwestern United States.
Group Mobile Background:
- Deployed over 1.5 million rugged mobile devices.
- https://groupmobile.com/.
- Based on historical results, quarterly revenue of USD $3.4 million to USD $4.5 million, gross profit margin of 16% to 22% and positive EBITDA.
- Margins driven by services offerings.
- Rapidly growing recurring revenue Technology as a Service model.
- Hardware supplier relationships with the leaders in rugged and warehouse focused technology equipment manufacturers – Getac and Zebra.
- Strong distributor relationships including Ingram Micro, ScanSource and Synnex.
Route1 is acquiring Group Mobile to expand the use of Route1’s core technologies into the enterprise sector, diversify the Route1 client base, and leverage Group Mobile’s current and future placement of rugged mobile devices to sell Route1’s core technologies.
Route1 believes that tangible synergy is realizable post-closing as a result of the acquisition of Group Mobile. Route1 plans to:
- Sell ActionPLAN, Powered by MobiNET to Group Mobile’s long-standing customers and new US based automotive OEMs and Tier I and II parts manufacturers;
- Further the introduction of MobiKEY to corporate America by creating a seamless way to manage, patch, and harden rugged mobile devices; and
- Embed MobiKEY and ActionPLAN, Powered by MobiNET application software with new rugged devices sold to generate new recurring revenue.
The acquisition will also provide Route1 with additional sales resources for existing technologies and these new human resources will provide sales bench strength, training and mentoring to the existing Route1 sales team.