CriticalControl Solutions Corp.

CriticalControl Solutions Corp.

August 04, 2009 09:00 ET

CriticalControl Acquires Canadian Operations of BPO Management Services

CALGARY, ALBERTA--(Marketwire - Aug. 4, 2009) - CriticalControl Solutions Corp., (TSX:CCZ) today announced that it has acquired BPO Management Services, Ltd. ("BPO") for $2.4 Million from US based BPO Management Services, Inc. (OTCBB: HAXS). BPO is a provider of imaging products and services, inclusive of business process outsource solutions with approximately 85 employees based in Winnipeg, Manitoba and Toronto, Ontario. According to BPO's management prepared financial statements for the six months ended June 30, 2009, BPO generated revenue of $5.8 Million and a net loss of $0.5 Million from continuing operations to be acquired by CriticalControl.

"The addition of BPO to our government imaging and outsourcing business is a key strategic geographic expansion. While remaining in our core area of operational expertise, we are able to reduce our concentration risk to the Alberta economy," said Alykhan Mamdani, President and CEO of CriticalControl. "Based on cost savings generated through economies of scale and consolidation of overhead, Management anticipates BPO will contribute to our bottom line in 2010 and provide for greater avenues of growth thereafter."

Approximately 40% of BPO's revenue is generated from Winnipeg based imaging and enterprise content management services similar to the Corporation's government and healthcare business. The remainder of the business is the sale of imaging equipment and third party maintenance contracts provided by BPO's partners to BPO's government, financial, healthcare and other high end paper intensive clients across Canada.

The purchase price includes a cash payment of $100,000 to BPO Management Services, Inc. and the assumption of a working capital deficit of approximately $2.3 Million. CriticalControl will also incur additional closing costs, which are not yet fully determinable, but will include restructuring and severance charges in addition to legal fees associated with the acquisition.

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

This media release contains certain forward-looking statements that reflect the current views or expectations of CriticalControl Solutions Corp. 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.

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