CriticalControl Solutions Corp.
TSX : CCZ

CriticalControl Solutions Corp.

October 01, 2010 14:20 ET

CriticalControl Acquires Visible Data Group

CALGARY, ALBERTA--(Marketwire - Oct. 1, 2010) - CriticalControl Solutions Corp. (TSX:CCZ) ("CriticalControl") today announced that CriticalControl Energy Services Inc., a wholly-owned subsidiary of CriticalControl has acquired Calgary, Alberta-based Visible Data Inc. and Visible One Call Inc. (the "Visible Data Group" or "VDG") for $0.75 Million. VDG's business includes:

  1. A service to manage gathering system (pipeline) schematics integrated with data from regulatory databases. This service extends the capability of CriticalControl's current schematic data management solution and will be integrated into CriticalControl's product offering.

  2. The sale of subscriptions of VDG's proprietary online well production and pipeline attribute databases. A service of this nature was on CriticalControl's development path for its proprietary ProStream service which currently includes the provision of gas measurement management to over 400 clients in Canada. The integration of VDG's database subscription service as a value-added application into ProStream will reduce development cost, reduce our time to market and open the subscription option up to our existing client base.

  3. An outsourced solution to manage regulatory mandated facility tracking requirements. VDG provides oil and gas companies an end-to-end solution to track tickets issued by regulatory agencies which mandate the identification of all facilities in a given area in response to a request to disturb the ground in such area. VDG's solution is designed to ensure each ticket is received and acted upon. This service is currently being used by a senior Canadian integrated oil and gas company as one of VDG's dozen clients. 

"The acquisition of Visible Data Group strategically enhances our core offering and reduces our time to market for our current development initiatives," said Alykhan Mamdani, President and CEO of CriticalControl. "We look forward to the ability to leverage Visible Data Group's offering into our existing client base."

VDG generated revenue of approximately $0.8 Million during the 12 months ended September 30, 2010 according to VDG management prepared financial statements, generating net income of approximately $0.1 Million. As part of the transaction, seven employees from VDG will join CriticalControl.

The purchase price includes $0.55 Million paid on closing, $0.2 Million to be paid over the next nine months and additional performance-based compensation based on revenue growth of up to $0.25 million over the next three years. The cash portion of the purchase price was financed by a term loan from the Corporation's bank at prime plus 1.75%, repayable over a one-year period.

About CriticalControl:

CriticalControl enables its clients to increase operational performance through the better control of critical business information. Integrating technology with labour-intensive processes of imaging and data entry, CriticalControl empowers its clients to increase their competitiveness, reduce operating expenses and improve margins. For more information please visit www.criticalcontrol.com.

Forward Looking Information:

This press release contains forward looking information regarding the integration of VDG's business into CriticalControl's core offering and the benefits of cross selling these services to CriticalControl's existing client base. This forward-looking information is subject to certain risks that could cause actual results to differ significantly from those anticipated. For example, there is no assurance that CriticalControl will be able to successfully integrate VDG's business units into its core offering in a commercially beneficial manner. In addition, there is risk that CriticalControl's client base will not be responsive to these new offerings. Actual revenue from these sources may differ from expectations due to changes in the business environment and client plans. 

Although CriticalControl has attempted to identify the important factors that could cause actual results to differ significantly from those anticipated, there may be other factors. Accordingly, readers should not place undue reliance on the forward-looking information. CriticalControl does not undertake to update any forward-looking statements that are contained in this press release, except in accordance with applicable securities laws. Further information on CriticalControl is available at www.sedar.com.

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