Source: ActiveCore Technologies
ActiveCore Technologies (OTC BB:ATVE.OB), a Company that operates as a payment technology solution provider, is pleased to announce that it has signed a non-binding Letter Of Intent (LOI) to acquire Collective Point of Sale Solutions (CollectivePOS), a leading Canadian provider of payment processing services and secure point of sale solutions.
This transaction is accretive to ActiveCore as CollectivePOS already has both solid revenue and earnings and will generate more than $6,000,000 USD in sales in 2007 from more than 9,000 existing merchant accounts processing in excess of $1 billion annually.
ActiveCore plans to use the CollectivePOS acquisition as a base to launch a Merchant Services consolidation strategy that will provide an immediate and expanding client base for the implementation of its CyBux, ePocket and ActiveCAST products. This strategy will achieve aggressive revenue and earnings growth through the addition of new merchants and an expanded product footprint. In addition to being accretive this transaction is highly synergistic from both a technology and market expansion perspective. Completion of this transaction will accelerate ActiveCore's planned move to a more senior exchange as it will have all of the required ingredients: revenue, profitability, outstanding products and excellent management. ActiveCore plans to complete this acquisition by the end of its first quarter and will use a combination of cash and stock.
Peter Hamilton, Chief Executive Officer of ActiveCore, stated, "The planned acquisition of CollectivePOS by the end of our first quarter represents a major event identifiable as the single most dominant milestone in Company history. It will provide immediate revenue and positive cash flow and forms a cornerstone from which the business can profitably expand both within Canada and Internationally." Hamilton went on to say that "CollectivePOS has an excellent management team, recurring transaction-based revenue as well as a great technology. It is this combination of people, product and a proven business model that ideally positions the Company to take advantage of the fragmented Merchant Services Provider market and execute a highly profitable roll-up strategy."
Michael Back, CEO of Collective Point of Sale Solutions, stated, "Over the past 5 years, we have built an extremely profitable company by focusing on delivering superior payment technology and exceptional service to small and medium sized businesses throughout Canada. We feel that the time has come for us to expand both our product offering and our Merchant base and believe that this transaction will provide us with the resources that are needed to accomplish this."
Neil Fishenden, CEO of Global Sterling Payments Systems (GSPS/ePocket), stated, "This acquisition dramatically enhances ActiveCore's strategy to become a world class payment technology solution provider." Mr. Fishenden went on to say that, "ActiveCore's planned expansion into the UK market, the most developed in Europe, will be significantly enhanced by the acquisition of CollectivePOS and the addition of their products to our portfolio. ActiveCore's ability to offer 'Card Not Present Solutions' (ePocket and CyBux) to CollectivePOS merchants as well as the ActiveCAST Marketing platform will greatly enhance the potential for incremental revenue in the proven CollectivePOS Model."