PLEASANTON, Calif., Dec. 11, 2012 (GLOBE NEWSWIRE) -- Systems America, Inc. (OTC:SYAI) ("Systems America" or the "Company"), a premier provider of cloud computing and information technology solutions, is pleased to announce the acquisition of Bartronics America, Inc. ("Bartronics America"), recently renamed mCloud, Inc., headquartered in Princeton, New Jersey. For the fiscal year ending December 31, 2012, Bartronics America is estimated to generate total Revenues of over $36 million and adjusted EBITDA (Earnings before interest, taxes, depreciation and amortization) of $3.6 million from their information technology and software services business.
Bartronics America has strategically built practices that deliver end-to-end solutions in the areas of Business Analysis, Software Development, Project Analysis & Management, Data Warehousing, and Enterprise Software Implementation and Support. Bartronics America has a strategic Global Presence in the US, Singapore, and India, with 6 offices and 2 Global Cloud Delivery Centers. Bartronics America's global workforce has 450 employees with the majority of employees in the United States and India.
As announced earlier in 2012, Systems America has identified, evaluated and discussed acquisition prospects with more than 8 different businesses with a range of annual revenues from $18 million to $40 million. Of those 8 targets, Systems America has acquired 2 of those companies (including Bartronics America), has signed term sheets with another 2 of those companies, and is currently negotiating terms with another two. With the two completed acquisitions, Systems America is expected to have Consolidated Pro-forma Revenues of over $40 million and Adjusted Earnings of $4.3 million for the fiscal period ending December 31, 2012.
The two target companies with which Systems America is currently negotiating consist of a Business Intelligence and Application Services Company, with revenues estimated in excess of $24 million and adjusted earnings in excess of $3.7 million for the year ending December 31, 2012, and another acquisition target company with Mobile Application and Social Analytics services generating revenues in excess of $25 million and earnings in excess of $4.1 million for the year ending December 31, 2012. The Company expects to close at least 2 more acquisitions in 2013 in a combination of cash and debt transactions.
Strategic Rationale
This acquisition of Bartronics America, based in Princeton, New Jersey, further strengthens Systems America's business model to sharply focus on select industries and achieve market leadership by creating best in class practices/offerings that help customers achieve their operational and strategic objectives.
This transaction is in line with Systems America's stated growth strategy and is expected to result in greater efficiencies and increased market share. Key Highlights:
- Accelerates Growth: The combined entity, the consulting practice and offshore delivery capability provides a scalable alternative to Tier 1 companies which usually pursue larger (US $20 million+) multi-service opportunities.
- Reinforces current Cloud and Mobile strengths of Systems America and the strategy to create a best in class Cloud, Business Intelligence, Data Warehousing and Big Data practice. Bartronics America's dynamic team and proprietary templates and methodologies reinforces Systems America's current strengths in value added various technology solutions to multiple industries.
- Provides a headstart into an adjacent vertical: Bartronics America' footprint in the various verticals such as the Manufacturing sector is expected to provide Systems America a headstart in adjacent space.
Impact of Acquisition on Bartronics America
- Expand vertical reach: In addition to the existing verticals, Bartronics America will now also be able to address the growing Cloud Computing and Mobility Services such as providing services around Salesforce.com, SAP, Workday and other Cloud Application Services market in various industries.
- Extend Global Presence: Bartronics America is expected to be able to leverage Systems America's global presence and effectively scale in regions such as Canada, Europe and India.
Mr. Venkat Maram, Chief Executive Officer of Bartronics America, said: "Today's businesses are moving at warp speed to penetrate new markets and to engage with customers. We worked closely with multiple software and cloud application companies to identify Bartronics America as the ideal candidate to provide global clients with enterprise services. Our global reach assures that we can deploy local teams of consultants that operate under a single umbrella and bring global best practices across cultural and geographic boundaries."
Bartronics America will be wholly owned subsidiary of Systems America, which is headed by Adesh Tyagi, as Chairman and Global CEO. Mr. Venkat Maram, who has served as CEO of Bartronics America since 2010, will continue to lead the business as CEO. "I am excited to be joining forces with Systems America, a company that shares a similar approach in building long-term relationships with customers," said Maram. "Our existing customers will now have access to a wider range of high-quality services and the global reach of Systems America."
"With our combined offering with Systems America, we represent a formidable force in the community of users of Enterprise and Cloud applications nationwide," continued Maram. "I look forward to our customers being able to experience the unique benefits that will result from bringing together two such highly skilled and multi-talented teams as Systems America and Bartronics America." Further, Maram said: "American businesses have clearly demonstrated their appetite to adopt and embed new technologies into their workflows quickly, as they rely on cloud services more than ever to deliver against their bottom line."
Adesh Tyagi, Chairman and CEO of Systems America, said: "Keeping ahead of the explosive demand for cloud and enterprise services globally and locally, we felt this was the right time to expand Systems America's presence in United States. We are also glad to have Venkat Maram leading this move and supporting our teams and customers. He brings expertise and experience to the table that perfectly matches Systems America's DNA and business culture and will enable us to establish and grow rapidly in Business Intelligence and Data Warehousing areas and expand globally in new geographies."
Systems America has been a Salesforce.com partner for over 12 years, helping global businesses in the media, financial services, telecommunications, government, healthcare and high-tech sectors transition to the cloud. Systems America's vision is to be one of top 3 global pure play vendors in the cloud and mobility market.
"We are excited to complete the acquisition of Bartronics America which is part of our overall strategy to scale through strategic initiatives such as acquisitions," said Adesh Tyagi, Chairman & CEO of Systems America. "Bartronics America is an excellent strategic fit and growth accelerator to our focused business model. It has a very committed team with extensive experience in rapidly scaling up BI, DW and Cloud services business and we see a large market opportunity in this area. We are particularly impressed with Bartronics America's excellent track record. The team has created an IT business which has grown under trying economic conditions. Over the last 10 years, the combined efforts of the Bartronics America team members have generated over $100 million of revenue in the IT and Outsourcing business. We welcome Bartronics America to the Systems America family and look forward to jointly helping our customers achieve their growth objectives."
About Systems America
Systems America is a premier provider of diversified cloud computing and information technology solutions to commercial and government clients worldwide. Systems America is ranked as one of the fastest growing companies in this industry, with multiple locations around the world. Systems America delivers superior cloud computing, information technology consulting services, and systems and integration services to hundreds of clients worldwide. Building on a core competency of efficient technology infrastructure outsourcing, Systems America is headquartered in Pleasanton, California, United States. For additional information about Systems America, please visit http://www.systemsamerica.com.
The Systems America logo is available a http://www.globenewswire.com/newsroom/prs/?pkgid=14070
About Bartronics America
Bartronics America, headquartered in Princeton, New Jersey, is a leading global organization that has successfully served the information technology market place for over ten years. Since its inception, Bartronics America has gained vast experience in providing quality IT solutions to its customers on time and cost effectively. Leveraging on the Excellence of its managing team, Bartronics America has strategically built the various practices to deliver end-to-end solutions in the areas of Business Analysis, Software Development, Project Analysis & Management, Data Warehousing, and Enterprise Software Implementation and Support. Bartronics America has a strategic presence in the US, Canada, Caribbean, and India, with 6 offices and 2 Global Delivery Centers. Bartronics America has built a reputation among its clients for quality work, delivered on time. For more information, visit http://www.bartronicsamerica.com.
The Bartronics America logo is available a http://www.globenewswire.com/newsroom/prs/?pkgid=16203
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