The two companies have a combined workforce of 650 and a total of 80,000 licensed users. AtRoad CEO Krish Panu said the acquisition would help solidify the company’s position as leader in mobile resource management.
Fremont, California-based AtRoad says its services are used by 125,000 workers in North America every day, while MDSI says it has a 100-strong customer base.
Richmond, California-based MDSI is loss-making, but AtRoad is more successful and recorded net income of $1.6m last year on revenue that increased 42.6% to $63.4m.
AtRoad provides a range of services which integrate wireless communications, location technology and a range of software that helps companies manage their mobile workforce. It offers its services on a hosted basis.
MDSI stockholders have been offered the alternative of $9 a share in cash or 0.75 of AtRoad shares. AtRoad estimates that the acquisition will be dilutive to earnings on a GAAP basis in the 2004 financial year, neutral in 2005, and accretive thereafter.
This article is based on material originally published by ComputerWire
