January 5, 2010–Elecsys (ESYS) Acquires SensorCast in Cash and Stock Transaction.
SensorCast, located in Lenexa, Kansas, provides integrated data collection and reporting solutions to the pipeline and energy exploration industries. Its complete end-to-end solutions, encompassing reliable data acquisition hardware, proprietary communication protocols, and a secure web-based data management system, have been deployed to monitor and control critical assets on pipelines, oil and gas wells, storage tanks, pump stations, and other critical infrastructure. Data from devices monitored by SensorCast technology can be integrated with existing supervisory control and data acquisition (SCADA) and database systems, allowing customers to cost-effectively expand their control systems to manage remote assets.
Elecsys acquired substantially all of the assets – including accounts receivable, inventory, and fixed assets, as well as all of the intellectual property and intangible assets – and assumed certain liabilities of SensorCast in exchange for $35,000 in cash and 266,325 unregistered shares of Elecsys Corporation common stock. The Company expects revenue from SensorCast solutions to exceed $1,000,000 over the next twelve months.
Karl B. Gemperli, Chief Executive Officer of Elecsys, stated, “Elecsys continues to achieve revenue growth for our M2M remote monitoring solutions despite the current global economic environment. As we continue to build our presence in the M2M market, Elecsys remains focused on developing additional M2M hardware, software, and communication solutions that provide critical operational data from remote sites to enhance the efficiency of our customers’ industrial operations. This strategic acquisition of SensorCast technology broadens our capabilities and complements our suite of proprietary M2M solutions and will provide our existing customers immediate access to new technologies and solutions, opening up new potential for growth.”
Gemperli continued, “As we continue to develop new innovative M2M solutions, we expect to target new industries and generate a corresponding increase in business opportunities. We are excited by the rapid growth in worldwide demand for wireless M2M solutions and our established technical expertise, global presence, and brand reputation positions Elecsys to be a key player in the growth of this developing market.”
Scott Tampke, president of SensorCast, commented, “We are proud to join the Elecsys organization and add the proprietary SensorCast technology to its select group of premium brands. Together, we offer a strong combination of innovative M2M solutions to our customers in the oil and gas industry. We believe that the coupling of SensorCast technology with the manufacturing, sales, and customer support resources of Elecsys, an established supplier of remote monitoring devices, will accelerate our growth in our targeted markets.”
Mr. Tampke will join the Elecsys management team as Chief Technology Officer.