TORONTO — Route1 Inc., a provider of industrial-grade data intelligence, user authentication and mobile workforce solutions, has announced that it has entered into a share purchase agreement to acquire Portable Computer Systems Inc. (PCS Mobile) for US$2.5 million.
PCS Mobile is a computer reseller with expertise in mobile data applications, including wireless products for in-vehicle use. The company offers guidance and mobile devices for a wide range of applications including utilities, telecommunications, field services, insurance, healthcare, Fire/EMT, police and public safety—as well as state and local government.
Based in Denver, Colo., PCS Mobile services customers primarily located in the Southwestern and Rocky Mountain regions of the U.S. Rugged devices and applications include but are not limited to Panasonic Toughbook mobile computers, Xplore and Getac rugged tablets, Genetec license plate recognition solutions, and accessories from Gamber-Johnson and Havis.
Based on prior year’s results, Route1 expects PCS Mobile to add annualized revenue of approximately US$15 million with a gross margin of 14% to 16%. The earnings before interest, taxes, depreciation, and amortization (EBITDA) contribution from PCS Mobile is expected to be consistent with current Route1 results.
PCS Mobile currently has 19 employees or full-time equivalents. Most of the company’s employees are based in the Denver office.
The retained team will be 15, including Kathy Pakkebier (president and CEO) and Martin Murphy (vice-president) under three-year employment agreements. Post-closing, Pakkebier and Murphy will sit on Route1’s steering committee and each act in a sales/business development capacity.
The transaction is expected to close on June 28, 2019.