- MetAlert recently signed a Letter of Intent to acquire Florida-based TrakTec in a cash and stock deal worth $4.5 million
- TrakTec manufactures and sells affordable location awareness technology solutions for consumer, enterprise, and government applications
- The planned acquisitions will bring on board synergistic and complementary technologies that fit in with MetAlert’s subscription model and existing suite of location-sensitive and tracking solutions
- The acquisition is also set to offer both short- and long-term benefits, eventually contributing to the company’s efforts to up-list
MetAlert (OTC: MLRT), a pioneer in location-sensitive wearable technology products and human and health monitoring devices, is looking to achieve “some big things” in 2023. Speaking in an interview with Sequire Spotlight published December 28, CEO Patrick Bertagna outlined the company’s strategic plans for 2023 (https://ibn.fm/S0D3z). MetAlert, he explained, is “looking at making some acquisitions, bringing on some new products, and possibly doing an up-list,” with the acquisitions, in particular, intended to align with the company’s existing subscription model and increase the revenue per user (“RPU”). And as the RPU increases, Bertagna continued, the company’s margins and overall revenues will also increase, which “hopefully will put us in a position to up-list.”
In what perfectly captures and exemplifies Bertagna’s statement, MetAlert on January 11 announced it had signed a Letter of Intent (“LOI”) to acquire TrakTec LLC, a Florida-based manufacturer and seller of affordable location awareness technology solutions for consumer, enterprise, and government applications, for a consideration of $4.5 million in cash and stock (https://ibn.fm/YKuHt).
As detailed in the terms of the agreement, MetAlert will acquire TrakTec’s commercial ready tracking products (iGPS products and SafetyNet(R) Tracking Systems), backend platform and mobile application, active paying subscriber base, and police department contracts, as well as onboard key hires, namely TrakTec’s Board Director, Chief Technology Officer, Head of Marketing, retired police chief, and support staff.
“We’re extremely excited about the opportunity to acquire TrakTec,” said Bertagna of the planned acquisition, which is set to close on or before March 17, 2023, subject to the completion of satisfactory due diligence and audits. “We see a lot of synergy and complementary technology that will not only fit right in with our existing subscription business model but also help expand it. We expect to gain several benefits, including additional revenues, subscribers, GPS devices for kids, and a radio-frequency identification (“RFID”)-based tracking product that is approved for federal grant funding, existing police contracts, and certain key hires.”
TrakTec’s location awareness technology solutions, which have commercially launched and successfully attracted a consumer and enterprise subscriber base, are designed to offer a range of enhanced monitoring services. The aforementioned iGPS products, for example, include the Wizard GPS Tracking Watch Phone, designed for children, and the Phoenix watch, a GPS-based smart wearable for seniors. On the other hand, the SafetyNet Bracelet is an RFID-based and Bluetooth-based tracking technology used by police departments across the United States to facilitate the police search and rescue of wandering seniors.
According to Bertagna, MetAlert anticipates the acquisition will offer both short- and long-term benefits. “Short-term, this will grow our existing subscriber base, increase revenues, and expand our product offering,” he explained. “Longer term, we will have more capability to develop new products, grow the government and police department sales channels, have a sales and support presence on the East Coast, and accelerate the company’s growth as we work toward a possible 2023 up-list to a national exchange. There are several requirements to an up-list, such as having more independent directors, a stronger balance sheet, shareholder equity, etc., all of which this acquisition will help support.”
MetAlert and its subsidiaries design, develop, manufacture, sell, distribute, and license global end-to-end hardware, software, and connectivity solutions, personal location and wandering assistive technologies that support two-way tracking (GPS/BLE wearable products), and health data collection and monitoring solutions. These solutions offer convenience for the caregivers of patients worldwide living with Alzheimer’s, Dementia, or Autism (“ADA”), especially given ADA patients are prone to wandering and, in some cases, getting lost. MetAlert primarily targets the ADA market, which comprises over 34 million people (https://ibn.fm/8Wvpn).
For more information, visit the company’s website at www.MetAlert.com.
NOTE TO INVESTORS: The latest news and updates relating to MLRT are available in the company’s newsroom at https://ibn.fm/MLRT
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