WidePoint Corporation Expands Presence And Capabilities In First Responder Authentication Market With Acquisition Of VUANCE, Inc's Government Solutions Division
WASHINGTON, Feb. 9 /PRNewswire-FirstCall/ -- WidePoint Corporation (NYSE-AMEX: WYY), a specialist in wireless mobility management and cybersecurity solutions, announced today that its wholly-owned subsidiary, Advanced Response Concepts Corporation, has acquired the assets and relationships of VUANCE, Inc's. Government Solutions Division, which focuses on security solutions for locating, credentialing, and managing essential personnel. The ARCC Business Unit will provide a secure critical response management solution designed to improve coordination between emergency services and infrastructure agencies. The smart-card based solution allows emergency managers to effectively assign, locate, manage, and account for first responder personnel -- and make readily available an individual's attributes, skills, training and qualifications to provide timely and relevant on-scene emergency support.
Tracking, credentialing and managing first responder personnel is a key area of focus and increased spending for the Department of Homeland Security, as part of its First Responder Authentication Credentialing (FRAC) initiative. Solutions provided by this new WidePoint Business Unit have been already deployed in select Northeastern U.S. states. WidePoint anticipates combining this newly acquired software with the Company's existing FRAC offerings, and augmenting the development and implementation staff of ARCC, located in central Massachusetts, with additional WidePoint personnel located in northern Virginia, in order to expand the deployment of this solution nationwide.
"The purchase of this software and services solution, and the planned integration with our existing business, significantly expands our presence and capabilities in the area of First Responder Authentication Credentialing. It also improves our ability to meet the accelerating demands from the Department of Homeland Security, as well as broadening our penetration of state and local first responder markets across the country," said CEO Steve Komar at WidePoint.
Dan Turissini, CTO of WidePoint, added that, "We had previously partnered with VUANCE in the Northeastern United States to deploy this solution in collaboration with our existing services; so we have familiarity with this solution set, and the former VUANCE team now joining WidePoint. Bringing this proprietary product suite in-house gives us increased control and allows us to leverage and expand the capabilities that our combined solution set offers to the FRAC Community."The Company expects the asset purchase to be accretive to WidePoint during 2010. WidePoint will pay approximately $550,000 for the acquired assets, and the assumed liabilities and related expenses in this transaction. In addition, VUANCE has a three-year earn-out of up to an additional $1.5 million, based on revenue levels and other targets generated by the ongoing operations of the acquired assets. "We anticipate this acquisition to result in $4 million to $6 million in incremental revenue for WidePoint during 2010, and to deliver a 100% payback on invested capital in less than one year," added Jim McCubbin, WidePoint's Chief Financial Officer. "We evaluated several options, and determined that purchasing this already developed and deployed solution was more cost effective than developing a similar solution in-house." About WidePoint WidePoint is a specialist in providing wireless mobility management and cybersecurity solutions utilizing its advanced information technology products and services. WidePoint has several wholly-owned subsidiaries holding major government and commercial contracts, including Operational Research Consultants, Inc., iSYS, LLC, Protexx, Advanced Response Concepts Corporation, and WidePoint IL. WidePoint enables organizations to deploy fully compliant IT services in accordance with government-mandated regulations and advanced system requirements. For more information, visit http://www.widepoint.com. Safe-Harbor Statement under the Private Securities Litigation Reform Act of 1995: This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), including all statements that are not statements of historical fact regarding the intent, belief or current expectations of the company, its directors or its officers with respect to, among other things: (i) the company's financing plans; (ii) trends affecting the company's financial condition or results of operations; (iii) the company's growth strategy and operating strategy; (iv) the declaration and payment of dividends; and (v) the risk factors disclosed in the Company's periodic reports filed with the SEC. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend" and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the company's ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors including the risk factors disclosed in the company's Forms 10-K and 10-Q filed with the SEC. SOURCE WidePoint Corporation
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