IA Global (OTCQB:IAGI), a services and outsourcing company based in San Francisco, California, has agreed to acquire PowerDial from Innovative Software Direct (PLUS:IDSP), in an all stock offer.
PowerDial, based in Durham County, England, provides networks and applications that supports wireless, voice, and video data. For fiscal 2009, PowerDial reported revenues of $2.7 million.
Under the terms of the agreement, IA Global will pay 2.4 million shares of its own common stock for PowerDial.
With IA Global’s current share price of $0.65, the deal gives PowerDial a valuation of $1.56 million.
The acquisition is subject to the approval by IA Global’s board, the completion of due diligence, among other terms. The deal is expected to close by October 31, 2010.
Commenting on the acquisition, Brian Hoekstra, CEO of IA Global, said, "The acquisition of PowerDial brings IA Global back into outsourcing and into the technology application business and enables the company to compete once again on a global scale.”
“This latest acquisition represents a highly scalable opportunity that provides a substantial growth engine that will help us achieve our goal of achieving $100 million in annual revenues and $10 million in annual EBITDA by fiscal 2012.”
For the year ended March 31, 2010, and before accounting for interest, taxes, and depreciation, the company recorded a loss of about $7.3 million.