Key highlights:
- The sale of Yard Management will strengthen TrackX balance sheet
- Creates joint sales and marketing opportunities through FourKites expansive network
- Enables TrackX to focus on high margin, repeatable SaaS-based asset management solutions
- Further differentiates FourKites as the leader in supply chain visibility and execution solutions
DENVER, March 25, 2020 (GLOBE NEWSWIRE) -- TrackX Holdings Inc. (TSX.V:TKX | OTC: TKXHF | FRANKFURT:3TH) (“TrackX” or the “Company”), a SaaS-based enterprise asset management solution provider, announces it has completed a strategic transaction with FourKites, the Chicago-based creator of the predictive supply chain visibility category, in which FourKites has acquired the TrackX Yard Management business, related intellectual property and customer Yard contracts.
The Transaction
Under the terms of this transaction, TrackX will receive up to US$2.8mm (C$4.05mm) in consideration under the sale. This is comprised of: US $1,900,000 (C$2.75mm), with US$1,600,000 (C$2.3mm) in cash paid on closing and $300,000 (C$450,000) in cash paid in 12 months, provided that 75% of the recurring revenue associated with the TrackX Yard Management business is retained and an additional US$900,000 (C$1.3mm) over nine months for engineering services to assist with the transition of the Yard Management business to FourKites. Additionally the two companies have established a strategic collaboration agreement under which TrackX will receive 30% of the first year SaaS revenue generated by FourKites on existing opportunities in TrackX’s pipeline. TrackX will also receive 15% of the first year SaaS revenue on customer opportunities that TrackX introduces FourKites into and which results in revenue to FourKites.
FourKites Partnership
The addition of the TrackX yard management solutions and related intellectual property to the FourKites platform enables FourKites to create Dynamic YardSM, an industry-first supply chain visibility solution that extends real-time visibility into the yard. This capability further differentiates FourKites in the market by providing a highly scalable, hardware-agnostic, IIoT-enabled yard management solution to its existing and future customers. The partnership will position FourKites as the leader in predictive supply chain visibility and execution and TrackX as the leader in IIoT enabled enterprise asset tracking.
“Today’s announcement represents a huge win for TrackX and FourKites customers,” said Tim Harvie, TrackX President & CEO. “The addition of yard management into FourKites product offering adds visibility to additional data points critical to delivering full supply chain visibility to customers. The ongoing relationship between TrackX and FourKites will continue to offer benefits to both existing and future customers of both companies. This is truly a win-win for all parties involved and allows TrackX to focus on expanded growth specific to the asset management industry.”
“FourKites’ Dynamic YardSM, which integrates real-time in-transit data with real-time yard data, will revolutionize how enterprises manage warehouse and yard activities,” said FourKites CEO Mathew Elenjickal. “We are thrilled to introduce this new platform by combining our industry-leading predictive ETAs with TrackX’s yard management solutions. Up until this point, warehouses and yards have been unable to capitalize on the massive data made available by the ELD Mandate. Dynamic YardSM will forever change the industry by bringing much-needed transparency and efficiency to shippers, trailer pool operators and marine terminals, alike.”
TrackX Forward Looking Business
The sale of TrackX’s yard solution business will enable TrackX to focus on leveraging its scaleable GAME asset management platform on industry opportunities where IIoT can be utilized to gain insight to enterprise assets and operations; for example Returnable Transport Item tracking (eg. the beverage industry) and High Value Asset tracking (eg. the insurance industry). These high margin SaaS-based solutions are easily scalable and repeatable with a short sales cycle and low operating overhead. With a strengthened balance sheet and a notable reduction in operating costs, the Company is able to aggressively pursue both its pipeline of opportunities and expansion within current customers without significant capital outlay.
GAME offers companies an unparalleled opportunity to gain operational efficiencies while at the same time better understand the movement, status and ownership of their assets. GAME’s Insight module can turn this massive amount of data captured through the IIoT devices into meaningful information through key performance indicators, workflow optimization and predictive analytics. TrackX’s recent integration with blockchain further extends asset visibility and tracking in a secure and immutable way which allows customers to more effectively communicate, collaborate and conduct business across multiple locations and with their supply chain partners.
In addition to the sale of its Yard business, TrackX has migrated some of its engineering resources to FourKites to both support FourKites new yard solution and position both companies for future joint customer opportunities.
About TrackX
TrackX Holdings, Inc., based in Denver, Colorado, is an enterprise asset management company deploying SaaS-based solutions leveraging multiple auto-ID and sensor technologies for the comprehensive tracking and management of physical assets. TrackX's GAME platform enables the IIoT by providing unique item level tracking, workflow processing, event management, alerting and powerful analytics to deliver solutions across a growing number of industries. TrackX delivers significant value to a growing list of Fortune 500 companies and for customers in industries such as transportation, beverage, brewery, healthcare, hi-tech, hospitality, mining, agriculture, horticulture, manufacturing and government.
About FourKites
FourKites is the largest predictive supply chain visibility platform, delivering real-time visibility and predictive analytics for the broadest network of Global 1000 companies and third-party logistics firms. Using a proprietary algorithm to calculate shipment arrival times, FourKites enables customers to lower operating costs, improve on-time performance and strengthen end-customer relationships. With a network that spans millions of GPS/ELD devices, FourKites covers all modes, including truckload, LTL, ocean, rail, intermodal and parcel. The platform is optimized for mobile and equipped with market-leading end-to-end security.
To learn more, visit https://www.fourkites.com.
For more information, please contact:
Gene McConnell, TrackX Holdings Inc.
investor@trackx.com
303-325-7300
Neither TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. All statements that address future plans, activities, events or developments that the Company believes, expects or anticipates will or may occur including the Company’s anticipated pipeline and value of current and customer deployments and future opportunities are the managements best estimates and cannot be guaranteed or relied upon and is forward-looking information. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements in this news release, whether as a result of new information, future events or otherwise, except as required by law.