WidePoint acquires VUANCE piece for $.5 million
WASHINGTON--WidePoint Corporation, a provider of 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 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.
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 percent payback on invested capital in less than one year,” said Jim McCubbin, WidePoint’s chief financial officer, in a statement. “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.”