CALGARY, ALBERTA — (Marketwired) — 03/17/15 — CriticalControl Solutions Corp. (“CriticalControl” or the “Corporation”) (TSX: CCZ) announced that it has signed, through Gas Analytical Services, Inc., its wholly owned operating subsidiary in the United States, a definitive agreement to acquire certain assets of Legacy Measurement Solutions, Inc. (“Legacy”) of Dallas, Texas relating to the interpretation of gas charts, the provision of gas and liquids analysis and the provision of measurement related field services. The transaction is expected to close on or about April 1, 2015.
“The acquisition of this portion of Legacy–s business geographically expands our core services business in the United States into our key targeted areas of growth including Louisiana, Texas and Oklahoma,” said Alykhan Mamdani, CEO of CriticalControl. “Leveraging this type of services business to penetrate the US market with our key software is an essential component of our growth strategy.”
The business is expected to add over US$6 million in annual revenue to CriticalControl and is expected to be immediately accretive. The purchase price of US$2 million will be paid 80% on closing with the remainder payable on December 15, 2015.
Forward Looking Statements
There are a number of customary conditions which need to be addressed prior to the consummation of the transaction disclosed herein. Some of these conditions are outside the control of the Corporation. Although the transaction is anticipated to close on April 1, 2015, a delay in meeting these conditions could delay closing or could, under certain circumstances, cause the transaction not to close.
Expectations of revenue and the accretive nature of the business to CriticalControl are based upon management–s understanding of the business, the makeup of revenue, historic performance and current industry trends. As the acquisition contemplated herein is for assets, expectations cannot be based solely on historic performance. Actual results may vary materially from expectations especially if there is a delay in transitioning the customers of Legacy to CriticalControl.
About Legacy
Legacy (formerly J-W Measurement Company) offers engineered measurement, production and process equipment, operating supplies, and services to the oil and natural gas industry, including: engineered ultrasonic and orifice measurement stations, custom or standard meter tubes, LACT Units, gas production units, production equipment, process equipment, power supply equipment, and fabricated buildings.
About CriticalControl
CriticalControl provides solutions for the collection, control and analysis of measurement and operational data related to oil and gas wells across North America. We provide services to capture the data, cloud-based software to visualize and manage it and the business intelligence to make quicker and more informed operational decisions.
Contacts:
CriticalControl Solutions Corp.
Mr. Alykhan Mamdani
President & CEO
(403) 705-7500
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