Leading Rugged Mobility Suppliers Join Forces to put Enterprise Needs First
It has been announced that Motion Computing, Inc. and its subsidiaries (Motion), will be acquired by leading rugged mobile hardware manufacturers Xplore Technologies Corp.
Both based in Austin, Texas, the acquired company has previously been named as the number two provider worldwide of rugged mobile hardware by VDC Research.
"The acquisition of Motion is consistent with our goal to establish the best and broadest line of rugged tablets for the enterprise market," said Philip Sassower, Chairman and CEO of Xplore. "Motion represents a unique opportunity for Xplore to acquire an Austin-based company with deep industry domain expertise, and that possesses products and channels complementary to our own. Together we will address a broader range of customer needs and provide a one-stop-shop for rugged tablets."
"Motion is excited about what this combination brings to its customers and business partners," said Peter Poulin, CEO of Motion. "The capital backing of Xplore supports a robust product pipeline and customer service capabilities that are critical to enterprises with whom Motion has had long-standing relationships."
The transaction will be effected through an asset purchase and sale agreement by and among Xplore, Motion and Square 1 Bank. Xplore will acquire Motion for approximately $9million, plus the assumption of approximately $7million in net liabilities. Xplore intends to consummate the transaction using proceeds from a new $15 million credit facility with Square 1 Bank, and to support integration and growth of the two businesses with its cash on hand.
Xplore tablets are among the most powerful and longest-lasting in their class and are built to withstand nearly any hazardous condition or environmental extreme. The rugged tablets are deployed across a variety of industries and sectors, such as energy, military operations, manufacturing, distribution, public services, public safety, government, and other areas with hazardous work conditions.
Similarly, Motion is known for delivering rugged mobile technology solutions customised to business workflows, purposely built for vertical markets including field service, healthcare, utilities, construction, retail, public safety and first responders to improve worker productivity, data accuracy and security.
"Xplore has a proven track record in focusing its resources to generate sustainable growth," said Mike Rapisand, CFO of Xplore. "After a successful recapitalisation and offering in 2012, we invested cash to significantly expand our addressable market, revenue and EBITDA. Our executive management team has over 200 years’ combined experience in managing companies like Xplore and Motion, and we are confident that the two business will be successfully integrated to deliver growth and value to all of our stakeholders."
"Nearly 50% of Motion revenue comes from outside the United States," added Mark Holleran, president and COO of Xplore. "Leveraging the mature distribution channels that Motion has developed over the last 10 years, Xplore will significantly expand its international reach. We are particularly excited to include in our offering Motion’s R12, which was recently named by PC Magazine as Editor’s Choice for Rugged Windows Tablet PC. It has been very successful in law enforcement and manufacturing markets and is just one example of the expanding market in which Xplore will now participate."