March Networks to acquire Trax
OTTAWA, Ontario--IP-video manufacturer March Networks announced on Tuesday a definitive agreement to acquire the assets of Trax Retail Solutions, a Scottsdale, Ariz., provider of enterprise software for loss prevention, store operations control and profit optimization solutions in the retail sector.
According to a statement released to the press, March Networks will pay an initial $5 million in cash for the company, with an option to pay the rest in either stock or cash. There is an earn-out component, as well. The deal is expected to close by the end of this month.
"The acquisition of Trax is an important step towards our goal of becoming the world leader in video-based business optimization solutions," said March Networks president and chief executive officer Peter Strom, in the statement.
For fiscal year 2006, March expects Trax to contribute less than five percent of the company's total revenues.
March's statement said that many of Trax's roughly 50 employees will be retained, and it is likely that March will maintain the Scottsdale presence.
For more on March Networks' retail plans, see the July issue of Security Systems News.