SPOKANE, WA, Sept. 11, 2002 -- Itron Inc., a technology provider and source of knowledge to the global energy and water industries, has announced an agreement to acquire eMobile Data Corp. for $6.2 million in cash.
eMobile Data is a provider of wireless, Web-based workforce management solutions for the utility industry.
"The acquisition of eMobile Data is an important step to expand Itron's mission of helping utilities optimize the delivery and use of energy and water," said LeRoy Nosbaum, chairman and CEO of Itron.
"Workforce management is a key part of any utility operation and for Itron a natural evolution from the work we do with our handheld meter reading systems. As the exclusive distributor of eMobile Data solutions for the past year, we're confident in the power of their technology to benefit gas, water and electric utilities of all types and sizes. We look forward to combining the strengths of these technologies to deliver the highest value workforce automation solutions to serve our clients throughout their field operations."
eMobile Data is a publicly traded company based in Richmond, British Columbia. The company's flagship product is Service-Link, a Web-based application for utility field service dispatching and mobile workforce management. By combining wireless communications with the Internet and real-time information exchange, Service-Link enables utilities to streamline and automate many of the processes associated with field service, including turn-ons/turn-offs, gas leak detection, credit and collections, meter services and trouble calls. An important feature of Service-Link is its ability to be configured to meet the dispatch and data collection needs of any utility, in less time and at less cost than other solutions on the market.
"Our utility clients have told us that streamlining and enhancing the productivity of field workforce operations represents an area of significant need within their organizations," said Nosbaum. "By acquiring eMobile Data, we are demonstrating a lasting commitment to delivering the knowledge our utility clients require to reach unprecedented levels of efficiency and customer care by managing their mobile workforces better than ever."
Marc Jones, president and CEO of eMobile Data, believes Itron is perfectly positioned to meet the needs of the utility industry. "Itron has spent more than two decades helping utilities increase operational efficiency, reduce costs, and improve customer service. In fact, Itron's world-leading meter reading solutions are another form of field workforce automation for collecting meter reads. Itron has held a dominant market position in this area for years, so this acquisition is a logical extension to build on this strength and automate the field workforce on a broader basis."
About the Transaction
-- The total purchase price is $6.2 million in cash, subject to an expected post-closing net working capital adjustment.
-- The transaction has been approved by both Itron's and eMobile Data's Boards of Directors. The transaction is subject to approval by eMobile Data's shareholders and to customary closing conditions.
-- The transaction is expected to close the end of September 2002.
Impact of the Transaction on Itron's Previously Issued Guidance
-- Prior to this announcement, Itron provided 2002 guidance with a revenue range of $275 to $285 million, which represents a 22-26% increase over 2001, and a pro forma EPS range of $1.06 to $1.10, which represents a 40-45% increase over pro forma 2001 EPS. In addition Itron's previously provided guidance for 2003 was for revenue growth of 11% to 17% and pro forma EPS growth between 15% to 25% relative to the above 2002 expectations.
-- The acquisition of eMoble Data is expected to have minimal impact on the above revenue and pro forma earnings guidance for 2002 and 2003.
-- For GAAP purposes, we expect to report a nominal increase in intangible asset amortization expense in connection with the acquisition in 2002, and approximately $930,000 more amortization expense in 2003. Itron does not expect any in-process research and development (IPR&D) charge.
-- The impact of the acquisition on Itron's financial results is expected to be more meaningful beyond 2003 and is expected to be accretive both on a pro forma and a GAAP basis.
About Itron
Itron is a technology provider and source of knowledge to the global energy and water industries.
More than 2,000 utilities worldwide rely on Itron technology to deliver the knowledge they require to optimize the delivery and use of energy and water. Itron delivers value to its clients by providing industry-leading solutions for meter data collection, energy information management, C&I customer care, load management and demand response, transmission and distribution system design software and services, and web-based workforce automation.
About eMobile Data
eMobile Data Corp. is a Richmond, British Columbia based developer of software solutions for real-time integrated field service and wireless, Web-served dispatching, scheduling and Next Generation Mobile Workforce Automation.
