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Press release
Stockholm, 6 september 2005
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CellPoint acquires market position in North America
CellPoint Connect AB (publ) has entered into a conditional agreement to acquire Orion Information Services, Inc., a US-based company headquartered in Miami, Florida.
The acquisition price is set at SEK (Swedish Kroner) 12 million and will be paid in the form of 726,000 newly issued CellPoint shares. The transaction is pursuant to shareholder approval and a shareholder’s meeting is expected to take place by the end of the month.
The Orion acquisition gives CellPoint instant entry into the North American market, enabling CellPoint to more quickly capitalize on the high growth market opportunity North America offers for wireless services and products than it would be able to through organic growth.
By leveraging Orion’s existing customer base and network, CellPoint’s management team expects to accelerate the current market penetration of the Flamingo Headset by six months and anticipates that large-scale sales breakthroughs will be accelerated by 12 months.
The benefits this acquisition offers CellPoint include:
- a faster market penetration into the North and Latin American markets
- a strengthening of the senior management team
- a customer database comprised of several large brand companies with a strong growth potential
- several software products that are complimentary and strengthen CellPoint’s current product portfolio and would require millions of dollars to develop
- An ownership circle that, apart from Orion’s employees, is comprised of strong commercial investors with a continued commitment to CellPoint
”Our working relationship with Orion over the past six months has confirmed that our decision to acquire the company will vastly increase our ability to more quickly reach success in both North and Latin America. Over the last few months we have already started several joint sales activities in these markets, of which we have great expectations,” says CellPoint CEO Michael Mathiesen.
“The quality of Orion’s customers, team, management and investors are very high, and we have already seen how these things can benefit CellPoint’s current growth,” he adds.
Orion CEO Kristian Gjerding notes that the choice of CellPoint as his company’s future partner was a natural one that enables CellPoint’s solutions and international network to become integrated with one of the leading wireless services providers of mobile products and services in the American markets.
”The choice of CellPoint as our partner happened after negotiations with American investors who wanted to use Orion in the consolidation of the US mobile software market,” notes Gjerding. “The payment for Orion in public stock was another important factor in the decision. As CellPoint penetrates the North and Latin American markets, we can directly measure the increase in shareholder value we create and thus “harvest” the fruit of the work we are doing."
Mathiesen and Gjerding share the view that the revolution of the wireless market has only just begun. Orion has tested several CellPoint products—including the Flamingo headset and the Direct CRM system—on a few of its key customers, has received very positive feedback and has already booked its first orders.
About Orion Information Services
Orion Information Services (www.ois-inc.com) is a cross media company delivering profitable, engaging mobile content and services. Founded in 2002, this new breed of company provides our partners with innovative interactive services designed to keep pace with the ever-changing mobile world. Its cross-media services combine traditional media (television, radio and print) with the Internet and mobile consumer devices, such as mobile phones or palmtop units, to connect consumers to an entirely new world of wireless services. Headquartered in Miami Beach with offices in New York and LA, we are focused on the US and Latin American markets, and with a development office in Copenhagen, Denmark, Orion has secured access to the cutting edge wireless markets of the Nordic region.
About CellPoint Connect
CellPoint Connect AB (publ) (www.cellpoint.com) is a software and hardware company with 24 employees and offices in Stockholm and Copenhagen. CellPoint offers, through innovation and product development, customer mobile solutions that increase profitability and enhance communication with companies, consumers, co-workers and suppliers. CellPoint is listed on Stockholm´s AktietTorget (www.aktietorget.se) with the symbol CPNT.
CellPoint Connect ApS, a Danish Subsidiary of CellPoint Connect AB, develops, manufactures and markets the Flamingo Bluetooth Headset, a wireless headset using patent-pending EarClick technology for comfortable fit. Flamingo works with Bluetooth devices such as mobile phones and computers. CellPoint Connect ApS has offices in Denmark and Norway with target markets in Europe, North America and Asia.
For more information please contact:
Michael Mathiesen, VD CellPoint Connect AB (publ), +46 (0) 76 819 92 26
Kristian Gjerding, CEO Orion Information Services Inc, +1 305 206 2336 |
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