Chicago-based Telular Corp. has acquired SmartLogix’ ‘SmartTank’ line of business in a deal valued at over $6 million. SmartLogix was previously the largest value added reseller of Telular’s TankLink tank monitoring solutions with 400 end-user customers and nearly 16,000 billable tanks. TankLink is a machine-to-machine (M2M) wireless solution for automated tank replenishment. TankLink monitoring helps eliminate emergency or unnecessary deliveries. Real-time, 24/7 tank level information is transmitted over the nationwide cellular network. Tank monitoring devices deliver alerts on re-order thresholds, critical product level, and product delivery notifications. Data is hosted in a TankLink operations center and can be accessed via an internet-based inventory management system.
Terms of the transaction include a purchase price of $6.0 million and up to an additional $2.4 million performance-related payment. The purchase price comprises $1.5 million cash and conversion of an existing receivable.
Telular estimates the deal will add $2.6 million of revenue and $1.4 million of net income before non-cash items to its consolidated results. Telular also updated guidance for fiscal 2011. CFO Jonathan Charak said, ‘Net income before non-cash items was originally $8.0-9.0 million in fiscal 2011. The acquisition means we are increasing this to $8.5-9.5 million.’ More from www.telular.com.
This article originally appeared in Oil IT Journal 2011 Issue # 1.
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