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Critical Control Solutions Corp. (TSX:CCZ) Acquires Operating Assets of DGL Software Services Ltd. and Gas & Oil Accounting (1988) Ltd.(January 17, 2012)
CALGARY, ALBERTA -- (Marketwire) -- 01/17/12 -- CriticalControl Solutions Corp. (TSX:CCZ) ("CriticalControl") today announced that its subsidiary, CriticalControl Energy Services Inc., has acquired the operating assets of DGL Software Services Ltd. and Gas & Oil Accounting (1988) Ltd., which provide land, production accounting and financial accounting software and outsourced business processing to over 100 producers in Western Canada (the "DGL Assets").
DGL Software Services Ltd. and Gas & Oil Accounting (1988) Ltd. have been in business for over 20 years, and the assets acquired will extend the scope of the Vertex software acquired by CriticalControl in November 2011 by expanding CriticalControl's service offering to include the provision of production accounting services.
"The DGL Assets broaden our offering and reduce our time to market for our longer term strategy," said Alykhan Mamdani, President and CEO of CriticalControl. "The combination of our core measurement solutions with the DGL Assets and our previous acquisition of Vertex will help us to achieve our vision to provide end to end management of production data from the well head to the financial statement for oil and gas producers."
DGL Software Services Ltd. and Gas & Oil Accounting (1988) Ltd. employees will join CriticalControl's team based in Calgary, Alberta. For the 12 months ended October 31, 2011, the DGL Assets generated revenue of $1.3 Million and are expected to generate earnings before interest, tax, depreciation and amortization of $300,000 for CriticalControl on an annualized proforma basis. The purchase price for the assets was $1 Million, with $600,000 paid in cash on closing and the remainder to be paid over a 24 month period post closing.
Forward looking statements:
This press release contains certain forward-looking statements that reflect the current views or expectations of CriticalControl and its subsidiaries with respect to their performance, business, and future events. Such statements are subject to a number of risks, uncertainties, and assumptions as outlined in the Company's filings with the Canadian securities regulatory authorities. More specifically, this press release refers to benefits being derived from the integration of the DGL Assets and CriticalControl's products, and operational efficiencies expected to be created for the benefit of customers. The success of these benefits and efficiencies will be dependent upon successful integration of the products and acceptance of them by the marketplace, neither of which is assured. Additionally, integration of products carries development risks, the costs of which cannot be fully predicted.
CriticalControl enables clients to increase operational performance through better control of critical business information. Integrating technology with labour intensive processes of imaging and data entry, CriticalControl empowers clients to increase their competitiveness, reduce operating expenses and improve margins. For more information please visit www.criticalcontrol.com.
CriticalControl Solutions Corp.
President & CEO
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