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Posera-HDX Ltd. to Acquire Payments Company Zomaron Inc.
Apr 10, 2013 (01:04 PM EDT)
TORONTO, April 10, 2013 /CNW/ - Posera-HDX Ltd. ("HDX") announced today that it has signed a letter of intent to acquire Zomaron Inc., operating as Zomaron Merchant Services ("Zomaron") of London, Ontario. The terms of the transaction were not disclosed.
Posera-HDX is listed on the TSX under the symbol "HDX".
Founded in 2008, Zomaron Merchant Services provides credit and debit card processing solutions to Canadian merchants nationwide. Based in London, Ontario, Zomaron has offices in Edmonton AB, Toronto ON, and Montreal QC. Through its nation-wide network of sales representatives and strategic partnerships, Zomaron has experienced rapid growth, doubling its sales annually. Zomaron's exponential growth led it to be ranked NO.15 on PROFIT magazine's 13th annual PROFIT HOT 50 ranking released in its October 2012 issue. Zomaron's solutions and services can also be marketed and deployed in the United States. Zomaron has boarded up to one hundred and thirteen merchants per month and up to one hundred and forty four payment terminals per month.
Paul Howell, CEO of Posera-HDX commented "We are very excited to announce the merger of the Zomaron team with HDX. This transaction is in keeping with our strategy to provide integrated payment solutions to new and existing merchants that already utilize HDX products and services. The Zomaron business model, in conjunction with HDX's intellectual property and services, provides merchants with one-stop-shopping, one monthly payment, and one source for technical support of all of their retail technology solutions. The team at Zomaron have demonstrated exceptionally effective skills in marketing, deploying, and supporting payment solutions while growing their business at impressive year over year multiples. The steady growth of Zomaron's payment processing revenue, profitability, and recurring residual revenue is very attractive to HDX".
Zomaron products include retail debit/credit payment terminals, pay-at-the-table and wireless payment devices, as well as ecommerce and smartphone payments services, allowing Zomaron to provide business owners with secure, reliable and cost-effective payment solutions. Zomaron currently deploys its solutions to automobile dealerships, medical and professional offices, as well as traditional restaurant and retail environments.
"Our corporate philosophies towards providing quality products and excellent customer service are closely aligned and the organic growth and cross selling opportunities between our companies are powerful" says Tarique Al-Ansari, President and CEO of Zomaron. "This transaction also provides HDX and Zomaron with technology and revenue that could facilitate further growth through acquisition."
"This is a timely and strategic decision for the Zomaron team," says Joseph Jongsma, Vice President of Sales for Zomaron. "Combined with our existing payment solutions, being able to offer ATM's, owning our payment switch, and providing integrated solutions will be excellent advantages for our team of more than one hundred and fifty sales agents. The size and scope of the HDX service network and the features and benefits of the HDX product line will enhance our sales efforts and give us an opportunity to better serve our customer base. The larger combined company provides the extra team resources required to develop advanced technology and the ability to service customers in a wide geographic area."
The parties have agreed to negotiate a definitive agreement exclusively with each other and the transaction is expected to close on August 1st, 2013. The transaction is subject to a number of conditions including the parties reaching a definitive agreement and receiving all necessary regulatory approvals.
Posera-HDX is in the business of managing merchant transactions with consumers and facilitating payment. The company develops and deploys touch screen POS system software and associated enterprise management tools and has developed and deployed numerous POS applications. Posera-HDX also provides system hardware integration services, merchant staff training, system installation services, and post sale software and hardware support services.
Posera-HDX leading edge technology also includes prepaid stored value payments solutions, customer self serve kiosks and "line buster" mobile point of sale terminals. These products have been designed to dramatically enhance customer throughput and drastically reduce customer queues. These technologies are especially effective in high foot traffic environments that have limited cash register counter space, limited retail square footage, and the absence of a drive through.
Posera-HDX Ltd. develops, deploys, and supports a restaurant point-of-sale software know as "Maitre'D" which has been deployed in over 20,000 locations worldwide in eight different languages. The Company sells and services its clients directly, as well as through a network of approximately 103 value added reseller partners in 25 countries with approximately 600 representatives selling, supporting & installing its software. Posera-HDX employs approximately 137 people in offices in Toronto, London, Brantford, Mississauga, Seattle, Montreal, Glasgow (U.K.), Paris (France) and Singapore.
To find out more about Zomaron please visit www.zomaron.com
This discussion includes certain forward-looking statements that are based upon current expectations, which involve risks and uncertainties associated with our business and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions "anticipate", "believe", "plan", "estimate", "expect", "intend", and similar expressions to the extent they relate to the Company or its management. The forward-looking statements are not historical facts, but reflect HDX's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the matters discussed under "Risks and Uncertainties" in the Annual Information Form filed on March 28th 2013 with the regulatory authorities. HDX assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.