Ublip was merged into a Numerex wholly-owned subsidiary and will be fully integrated into the company’s operations. The aggregate consideration for the transaction includes approximately 400,000 shares of restricted Numerex class A common stock and approximately $0.3 million in cash.
The Ublip infrastructure and software enable the creation of Web-based M2M applications. But the application developers must identify hardware (radio modules, servers), understand and select wireless networks, build communications software, and the front-end web application.
Stratton Nicolaides, CEO and chairperson of Numerex, said: Our mission to provide a full range of comprehensive machine-to-machine (M2M) services to the industry is significantly advanced with the acquisition of Ublip. We gain from an infusion of technology that includes middleware designed to simplify application development and deployment, and ‘virtual’ hosting architecture.
While the Company has not yet finalized its Q3 results, revenues are expected to exceed $18.7 million that compares to revenues of $17.4 million in the second quarter of 2008 and $16.0 million in the third quarter of 2007. It presents a growth rate of 7.5% and 16.9% respectively. In addition, Numerex will report over 690,000 active network connections at the end of September 2008, compared to 617,000 as of June 30, 2008 and 386,000 at the end of September 2007.
