ROLLING MEADOWS -- Quadrant 4 Systems Corp. said it has completed the acquisition of assets being sold by three separate technology companies for a total cost of $12.2 million.
QFOR acquired assets from Blazerfish LLC, Teledata Technology Solutions Inc., and Momentum Mobility. Pending audits of the financial information from the sellers, the acquired companies are expected to have generated approximately $25 million in gross revenue during the past calendar year, the company said in a release. It estimates that the financial results will be a positive value on earnings.
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The total cost of the three acquisitions will be paid over the next 36 months. About 7 million new shares of restricted common stock will be issues based on an agreed value of 33 cents per share, according to Quadrant 4.
Additionally, the company will issue 3 million new shares of restricted common stock based on an agreed value of 33 cents per share for $1 million to fund the cash component to close the transaction.
The company will have new offices in Southfield, Mich., Irvine, Calif., and Walnut Creek, Calif. in addition to its current locations in New Jersey and Illinois. With the acquisitions, Quadrant 4 will expand global delivery capabilities to the Ukraine, Belarus and Vietnam and add more capacity to its existing delivery and R & D arrangements in India.
"The technology assets we acquired in these transactions are going to help us bolster our Social media, Mobility, Analytics and Cloud (SMAC) centric solutions set," said Dhru Desai, chairman of the board and chief financial officer for Quadrant 4. "We are particularly pleased with the addition of several Fortune 500 clients to our already impressive list of existing clients. Additional product technology and geographical presence will help Q4 serve clients more efficiently with industry leading solutions."