As pa t of the T a sactio , AdTech will co t ibute the Busi ess to AdTech IT LLC (“
AdTech p ovides i fo matio tech ology, telecommu icatio s, co ectivity a d ma aged se vices to small a d medium-sized busi esses th oughout ce t al a d o the Califo ia a d beyo d.
Acquisitio of 49% at the Fi st Closi g; emai i g 51% at the Fi al Closi g. The T a sactio is st uctu ed i two stages, such that (i) at the i itial closi g (the “Fi st Closi g “) AdTech will co t ibute its ope ati g assets elated to the Busi ess to JVCo a d IPM will i itially acqui e 49% of the issued a d outsta di g membe ship i te ests of JVCo a d (ii) at a subseque t closi g (the “Fi al Closi g “) IPM will acqui e the emai i g 51% of the issued a d outsta di g membe ship i te ests of JVCo, i each case pu sua t to a d subject to the te ms of the Pu chase Ag eeme t.Two-stage closi g tied to CLEC Lice se app ovals. The Fi st Closi g is expected to occu p omptly afte the Califo ia Public Utilities Commissio (the “CPUC “) app oves a Tie 2 Advice Lette elati g to the t a sfe of AdTech’s competitive local excha ge ca ie lice se (the “CLEC Lice se “) to JVCo (the “Tie 2 Advice Lette App oval “). The Fi al Closi g is expected to occu p omptly afte the CPUC app oves a cha ge-of-co t ol fili g elati g to the CLEC Lice se (the “CLEC Lice se Cha ge of Co t ol App oval “). Each closi g also emai s subject to othe co ditio s set fo th i the Pu chase Ag eeme t.Co side atio of up to $2.7 millio . The T a sactio p ovides fo agg egate co side atio of up to $2.7 millio , i cludi g a cash payme t at the Fi st a d Fi al Closi gs, a selle ote a d a pe fo ma ce-based ea out payme t payable upo achieveme t of ce tai milesto es.JVCo becomes a wholly ow ed subsidia y of IPM. Followi g the Fi al Closi g, JVCo will become a wholly ow ed subsidia y of IPM.
Jaso Katz, Chai ma a d Chief Executive Office of IPM, stated: “This t a sactio ep ese ts a impo ta t milesto e i the co ti ued executio of ou g owth st ategy. AdTech has built a st o g ma aged se vices busi ess th oughout Califo ia suppo ted by lo g-sta di g custome elatio ships a d a ecu i g eve ue model that alig s closely with ou existi g ma aged solutio s p actice. We believe the combi atio will e ha ce custome e gageme t a d d ive oppo tu ity g owth by c oss-selli g each compa y’s highly compleme ta y IT se vices a d solutio s ac oss a la ge combi ed base of custome s.”
M . Katz co ti ued: “AdTech se ves a dive se base of busi esses that ely o t usted adviso s to help ma age c itical tech ology eeds. By b i gi g ou o ga izatio s togethe , we will e ha ce existi g se vices a d the associated clie t outcomes with IPM’s deep expe tise i cybe secu ity, p ivate cloud, ma aged IT, hosti g a d othe tech ology- elated co sulti g se vices. We believe this t a sactio will st e gthe ou positio as a comp ehe sive ma aged tech ology solutio s pa t e while suppo ti g sustai able lo g-te m g owth.”
James Lawso , fou de a d P eside t of AdTech, added: “Th oughout ou histo y, ou focus has bee o helpi g custome s avigate a i c easi gly complex tech ology la dscape. We a e excited to combi e IPM’s additio al expe tise with the skills a d expe ie ce of ou AdTech team to bette se ve ou custome s. IPM’s cybe secu ity expe tise, ma aged IT capabilities a d adva ced secu ity solutio s will compleme t ou existi g st e gths a d expa d the suppo t a d se vices we ca offe . Ou custome s will co ti ue wo ki g with the AdTech team they k ow a d t ust, a d sig i g this ag eeme t does ot cha ge thei existi g co t acts o se vices. We look fo wa d to buildi g o those elatio ships a d co ti ui g to delive the high level of se vice a d suppo t ou custome s expect.”
The Compa y believes the T a sactio will fu the st e gthe its ma aged se vices platfo m by expa di g its custome each, i c easi g ecu i g eve ue oppo tu ities a d c eati g additio al pathways to delive compleme ta y solutio s ac oss a b oade clie t base.
M . Katz co cluded, “We emai focused o buildi g a st o g, custome -ce t ic tech ology platfo m th ough discipli ed g owth i itiatives. U de taki gs such as this allow us to expa d ou capabilities, b oade ou custome elatio ships a d positio the Compa y to capitalize o oppo tu ities i the evolvi g ma aged se vices ma ket.”
Key att ibutes of the Busi ess a d expected sy e gies i clude:
- Expa di g IPM’s ma aged se vices custome base th ough the additio of a busi ess with highly co siste t ecu i g eve ue.
- I c easi g oppo tu ities to delive cybe secu ity, hosti g, cloud a d ma aged IT solutio s to a b oade custome base.
- E ha ci g ecu i g eve ue visibility a d lo g-te m custome elatio ships.
- C eati g mea i gful c oss-selli g oppo tu ities ac oss both o ga izatio s.
- Suppo ti g IPM’s st ategy of buildi g a scaled ma aged tech ology se vices platfo m.
Hay es a d Boo e, LLP is se vi g as legal cou sel to IPM. Vi tus Law, PLLC is se vi g as legal cou sel to AdTech.
I tellige t P otectio Ma ageme t Co p. (Nasdaq: IPM) is a ma aged tech ology solutio s p ovide focused o cybe secu ity a d cloud i f ast uctu e. IPM p ovides dedicated se ve hosti g, cloud hosti g, data sto age, ma aged secu ity, backup a d disaste ecove y a d othe elated se vices, i cludi g co sulti g a d impleme ti g tech ology solutio s fo e te p ise a d comme cial clie ts ac oss the U ited States. IPM’s othe p oducts i clude Ma yCam. IPM has a ove 20-yea histo y of tech ology i ovatio a d holds 8 pate ts. Fo mo e i fo matio , please visit: www.ipm.com
Adva ced Tech ology Dist ibuto s I c. is a t usted ma aged se vices p ovide , offe i g a full li e of p ofessio al IT solutio s. Fo ove 40 yea s, AdTech has se ved small a d medium sized busi esses th oughout ce t al a d o the Califo ia a d beyo d as a comp ehe sive i fo matio tech ology pa t e .
Ce tai stateme ts co tai ed i this p ess elease co stitute “fo wa d-looki g stateme ts” as defi ed i Sectio 27A of the Secu ities Act of 1933, as ame ded, a d Sectio 21E of the Secu ities Excha ge Act of 1934, as ame ded, that a e based o cu e t expectatio s, estimates, fo ecasts a d assumptio s a d a e subject to isks a d u ce tai ties. Wo ds such as “a ticipate,” “assume,” “believe,” “budget,” “co ti ue,” “could,” “estimate,” “expect,” “fo ecast,” “goal,” “i te d,” “may,” “pla ,” “pote tial,” “p edict,” “p oject,” “seek,” “should,” “ta get,” “would” a d va iatio s of such wo ds a d simila exp essio s a e i te ded to ide tify such fo wa d-looki g stateme ts. I vesto s a e cautio ed that a y such stateme ts a e ot gua a tees of futu e pe fo ma ce a d that actual esults o developme ts may diffe mate ially f om those p ojected i the fo wa d-looki g stateme ts. Fo wa d-looki g stateme ts i this p ess elease may i clude, but a e ot limited to, stateme ts elati g to (i) the T a sactio a d its expected te ms, timi g a d closi g, i cludi g eceipt of the Tie 2 Advice Lette App oval, the CLEC Lice se Cha ge of Co t ol App oval a d satisfactio of othe closi g co ditio s, (ii) expectatio s ega di g the Compa y’s ability to effectively i teg ate the Busi ess a d ope atio s of JVCo followi g the co summatio of the T a sactio , (iii) the co ti ued listi g of the Compa y’s commo stock o The Nasdaq Capital Ma ket a d (iv) expectatio s of futu e sy e gies, pla s, p io ities, focus a d be efits of the T a sactio , i cludi g custome base expa sio , e ha ced ecu i g eve ue visibility, additio al c oss-selli g oppo tu ities a d p og ess towa d buildi g a scaled ma aged tech ology se vices platfo m. Such stateme ts a e subject to a umbe of assumptio s, isks a d u ce tai ties, ma y of which a e beyo d the co t ol of the Compa y, i cludi g but ot limited to (i) the ability of the pa ties to co summate the T a sactio i a timely ma e o at all, (ii) satisfactio of the co ditio s p ecede t to co summatio of the T a sactio , i cludi g the ability to secu e the Tie 2 Advice Lette App oval a d the CLEC Lice se Cha ge of Co t ol App oval i a timely ma e o at all, (iii) the possibility of litigatio elati g to the T a sactio a d (iv) othe isks desc ibed i the Compa y’s Secu ities a d Excha ge Commissio fili gs. The Compa y does ot u de take a d exp essly disclaims a y obligatio to update the fo wa d-looki g stateme ts as a esult of ew i fo matio , futu e eve ts o othe wise, except as equi ed by applicable secu ities laws. All fo wa d-looki g stateme ts a e based o ma ageme t’s estimates, p ojectio s a d assumptio s as of the date he eof.
Joe Do ame, Roge WeissLytham Pa t e s, LLC602-889-9680E: ipm@lythampa t e s.com
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