October 19, 2009 16:34 ET | Source: I.D. Systems, Inc.
HACKENSACK, N.J., Oct. 19, 2009 (GLOBE NEWSWIRE) -- I.D. Systems, Inc. (Nasdaq:IDSY), a leading provider of wireless asset management solutions, today announced that it has acquired didBOX, a privately-held manufacturer and marketer of vehicle operator identification systems based in the United Kingdom. The all-cash transaction is valued at 402,000 pounds (approximately $660,000), with 325,000 pounds ($533,000) paid up front and the balance due 12 months from the contract date, based on achievement of certain revenue and operating profit targets. In its fiscal year ended May 31, 2009 (unaudited), didBOX realized a nominal profit on revenues of approximately 402,000 pounds ($660,000).
"Our acquisition of didBOX expands I.D. Systems' base of operations in Europe, gives us immediate access to a broader base of European customers, and provides us with a wider array of solution options for prospects in the industrial vehicle management market," said Jeffrey Jagid, I.D. Systems' chairman and CEO.
"didBOX's portfolio of access control solutions for industrial trucks is a strong complement to I.D. Systems' industry-leading wireless vehicle management systems (VMS)," said Peter Fausel, I.D. Systems' executive vice president of sales and marketing. "By acquiring didBOX, I.D. Systems can integrate a family of entry-level driver identification products, capitalize on a recognized brand name in the European material handling management market, and benefit from well established distribution partners in both the U.K. and Europe. We believe the didBOX acquisition will make I.D. Systems a more comprehensive supplier of supply chain technology -- a 'one-stop shop' to address the needs of virtually any European industrial fleet."
Wireless vehicle management technology can improve workplace safety and security by restricting vehicle access to trained, authorized operators, providing electronic vehicle safety inspection checklists, and sensing vehicle impacts. These systems can also reduce fleet maintenance costs by automatically uploading vehicle data, reporting vehicle problems electronically, scheduling maintenance according to actual vehicle usage rather than by calendar or manual data entry, and helping determine the optimal economic time to replace equipment. In addition, wireless vehicle management systems can help improve productivity by establishing accountability for use of equipment, ensuring equipment is in the proper place at the right time, streamlining work flow through automated task messaging, and providing management with unique metrics on -- and controls over -- equipment utilization.
Based in Hackensack, New Jersey, with a European subsidiary in Dusseldorf, Germany, I.D. Systems is a leading provider of wireless solutions for managing and securing high-value enterprise assets, including industrial vehicles, such as forklifts and airport ground support equipment, and rental vehicles. The Company's patented technology, which utilizes radio frequency identification, or RFID, technology, addresses the needs of organizations to control, track, monitor and analyze their assets. For more information, visit www.id-systems.com.
Please note that didBOX's revenues for the year ended May 31, 2009, as reported in this press release, are unaudited and may not necessarily be calculated in accordance with generally accepted accounting principles in the United States of America.
This press release contains forward looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, such as the Company's prospects for additional customers and revenues. Forward-looking statements include statements with respect to the Company's beliefs, plans, goals, objectives, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond the Company's control, and which may cause its actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. These forward-looking statements are subject to risk and uncertainties, including, but not limited to, future economic and business conditions, the loss of any of the Company's key customers or reduction in the purchase of its products by any such customers, the failure of the market for the Company's products to continue to develop, the inability to protect the Company's intellectual property, the inability to manage the Company's growth, the effects of competition from a variety of local, regional, national and other providers of wireless solutions and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission, including the Company's annual report on Form 10-K for the year ended December 31, 2008. These risks could cause actual results to differ materially from those expressed in any forward looking statements made by, or on behalf of, the Company. The Company assumes no obligation to update the information contained in this press release.
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