Infrax (IFXY) Signs Definitive Agreement to Acquire Southern Power & Controls
January 11 2012 - 7:00AM
Marketwired
INFRAX SYSTEMS, Inc. (OTCBB: IFXY), a global provider of unified
Smart Grid-related products and services for the Energy and Utility
industries, announced today that they have executed the definitive
agreement to complete the purchase of Tampa, Florida-based Southern
Power & Controls Corporation (SP&C). The acquisition
signifies Infrax's next step towards securing the energy grid by
adding implementation of security and control systems to its
portfolio of utility and smart grid related products and services.
The transaction is expected to close by the end of the next
quarter, subject to customary closing conditions.
How This Transaction Benefits Infrax Systems
and our Shareholders:
- SP&C Combined EBITDA positive revenues for prior 3 year
period in excess of $50,000,000
- Estimated 2012 forward revenue in excess of $18,000,000
- Estimated 2012 EBITDA in excess of $1,000,000
- Through SP&C, Infrax will be considered the premier
contractor in the Southeast for installation of complex electrical
systems
- Workforce with extensive experience in high voltage
applications and required certification
- Enhance performance reputation among water, wastewater and
power generation markets
Infrax and SP&C bring strength to smart
grid implementations The complexity of today's smart grid
implementations require a skilled workforce capable of operating in
both high and low voltage environments, adept at wireless
infrastructure implementations, and technically proficient with
regard to both design and installation of complex control and
security systems. SP&C's versatility adds these capabilities
and more to Infrax's Secure Intelligent Energy Platform
offering.
The success of any advanced metering and automation project
relies on the quality of the organization responsible for the
successful implementation of the designed solution. As a leader in
complex control system installations for over 20 years, SP&C
has a proven track record of success in the electrical construction
arena.
The acquisition of SP&C is the first of several planned
acquisitions focused on implementation and human capital, rather
than purely on technology. The company plans to expand SP&C's
reach both domestically and globally through acquisition, as well
as organic growth.
The new implementation business unit, including SP&C, will
be led by William Barry, SPC's Founder and President. Barry brings
to Infrax a stellar reputation for outstanding financial results,
attracting talent, building world class teams, and developing
technical prowess.
Despite difficult market conditions, SP&C has delivered in
excess of $50,000,000 in revenue during the past 3 year period and
has generated positive EBITDA over the same period.
Says Barry: "The opportunity to combine our operations with
Infrax provides the new entity with a wide range of opportunities
in the energy sector and opens doors for both products and
service."
Extending the Value of Infrax's Secure Smart
Grid Products Utilities are faced with a technological dilemma
today; whether to continue to implement metering solutions without
robust security, only to have guidelines imposed at a later date
which invalidate their application or select a solution based on
the latest security technology, one which will meet or exceed all
impending guidelines and mandates.
Infrax's Secure Network Interface Card (SNIC) has been designed
from the ground up with security as its first priority and
communications as its second. The SNIC incorporates the latest in
both encryption and authentication technologies, providing
Utilities with future proof secure technology.
The acquisition of SP&C allows Infrax to provide utilities
with design and implementation support in addition to the supply of
hardware and software systems. SPC's extensive expertise in power
generation, transmission systems and control automation, also
allows Infrax to provide complete electrical implementation
services to our utility customers, expanding our focus beyond
metering applications.
"Bill and the SP&C team have created a template for
operational excellence and a corporate culture that will be used to
set the standard for our operations as we grow and potentially
acquire additional companies," stated Paul Aiello, CEO of
Infrax.
Details Regarding the Impending
Transaction
The transaction is expected to close by the end of Infrax's
third fiscal quarter ending March 31, 2012, subject to customary
closing conditions. The transaction is expected to have a material
impact on revenue for end of FY12 and FY13. Infrax will provide
additional information in its next quarterly filing in
February.
About INFRAX Systems Infrax Systems offers
a series of interrelated operational management, communications,
and grid security related products and services known as Secure
Intelligent Energy Platform (SIEP). Our products enable a
comprehensive and unified solution for communications and
applications management of the Smart Grid. SIEP™ incorporates a
wide array of communications, security, device and data management
tools for Smart Grid applications such as advanced metering
solutions and grid optimization. SIEP platform creates a unified
solution to securely manage Advanced Metering Infrastructure (AMI)
and distribution automation. Infrax's secure smart grid platform
incorporates a communications transport and management system (Grid
Mesh™), device and data security management, and ultimately secures
intelligent endpoint devices (SIED). The secure management of the
"last mile" backhaul will be necessary for utilities to implement
Smart Grid applications including AMI, real-time pricing, Demand
Side Management (DSM), Distribution Monitoring and Automation. When
combined, these applications can offer secure, economic,
operational and environmental benefits for utilities, and
ultimately the utility's customers.
For INFRAX Systems information, contact Investors@Infraxinc.com
or visit www.infraxinc.com.
Forward-Looking Statements This press release may contain
forward-looking statements covered within the meaning of the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements relate to, among other things, plans and
timing for the introduction or enhancement of our services and
products, statements about future market conditions, supply and
demand conditions, and other expectations, intentions and plans
contained in this press release that are not historical fact and
involve risks and uncertainties. Our expectations regarding future
revenues depend upon our ability to develop and supply products and
services that we may not produce today and that meet defined
specifications. When used in this press release, the words "plan,"
"expect," "believe," and similar expressions generally identify
forward-looking statements. These statements reflect our current
expectations. They are subject to a number of risks and
uncertainties, including, but not limited to, changes in technology
and changes in pervasive markets.
Contact: Media Contact: Infrax Systems, Inc.
investors@infraxinc.com 727-498-8514
Infrax Systems (PK) (USOTC:IFXY)
Historical Stock Chart
From Jul 2024 to Jul 2024
Infrax Systems (PK) (USOTC:IFXY)
Historical Stock Chart
From Jul 2023 to Jul 2024