CriticalControl Solutions Corp.
TSX : CCZ

CriticalControl Solutions Corp.

October 02, 2009 09:00 ET

CriticalControl Acquires Southport Data Systems

CALGARY, ALBERTA--(Marketwire - Oct. 2, 2009) - CriticalControl Solutions Corp. (TSX:CCZ) ("CriticalControl") today announced that CriticalControl Solutions Inc., a wholly-owned subsidiary of CriticalControl, has acquired all of the outstanding shares of Southport Data Systems Inc. ("Southport") for $2.3 Million. Southport is a provider of business process outsourcing solutions, with key strengths in large scale imaging and data entry. Southport has approximately 65 employees located in a Markham, Ontario based service bureau. According to Southport's management prepared financial statements for the six months ended August 31, 2009, Southport generated revenue of approximately $1.5 Million and earnings before interest, taxes, depreciation and amortization of $0.4 Million.

As part of the acquisition, Raymond South, the principal of Southport will join CriticalControl Solutions Inc. as Vice President, Operations for Ontario. Prior to founding Southport in 1990, Mr. South held management positions with RBC and Statistics Canada.

"The integration of Southport with our current business in the Greater Toronto Area entrenches CriticalControl as a strong player in a key geographic market which we believe is poised for growth as we exit the current economic downturn in 2010," said Alykhan Mamdani, President and CEO of CriticalControl. "The addition of Ray South to our senior management team is a greatly desired benefit for the leadership of our Ontario based business as well as for the expertise he will bring to CriticalControl."

The $2.3 million purchase price includes $1.5 million paid on closing, $0.3 million due on October 1, 2010 and $0.5 million due on November 1, 2011 based on certain growth performance criteria. As at August 31, 2009, Southport had assets of approximately $854,000 and liabilities of $74,000. The purchase price was financed from cash on hand and CriticalControl's operating line.

About CriticalControl:

CriticalControl enables its clients to increase operational performance through the better control of critical business information. Through the balance of practicality, innovation and technology, we empower our clients with everything from strategies and tools, to outsourced solutions to manage information, wherever and in whatever form that information exists. For more information please visit www.criticalcontrol.com.

This media release contains certain forward-looking statements that reflect the current views or expectations of CriticalControl Solutions Corp. and its subsidiary with respect to their respective performance, business, and future events. Such statements are subject to a number of risks, uncertainties, and assumptions as outlined in the Company's filings with the Canadian securities regulatory authorities.

Contact Information

  • CriticalControl Solutions Corp.
    Alykhan Mamdani
    President & CEO
    (403) 705-7500