Matrikon Completes Acquisition of PI Automation

  • May 18, 2004
  • Matrikon Inc.
  • News
Edmonton, AB-May 18, 2004-Matrikon Inc. (TSX: MTK) is pleased to announce that it has completed the acquisition of PI Automation Limited based in Aberdeen, Scotland. PI Automation is a supplier of turnkey web-based plant performance solutions and has been an integration partner of Matrikon's for over two years. PI Automation will be renamed Matrikon Europe Limited. Based on the company's March 31 statements (unaudited), Matrikon paid approximately £3.00 million (CDN$7.39 million) in cash for all issued and outstanding shares of PI Automation. As part of the acquisition, Matrikon received net assets of £0.87 million (CDN$2.09 million) for a net purchase price of £2.13 million (CDN$5.30 million), or 0.9 times calendar year 2003 revenue, 4.8 times EBIT and 6.7 times net income. £0.50 million of the purchase price will be held in escrow for 12 months.PI Automation recorded revenue of £2.41 million (CDN$5.52 million) and income of £0.32 million (CDN$0.73 million) in its most recently completed fiscal year (December 31, 2003), representing revenue growth of 87% and income growth of 29% over the previous year. Based on internal statements dated March 31, 2004 (unaudited), PI Automation had total assets of £1.36 million (CDN$3.27 million) and total liabilities of £0.49 million (CDN$1.18 million). Based on PI Automation's historic performance and assuming that performance continues under Matrikon's management, it is expected that the European operations will achieve revenue in the range of CDN$1.0 to $1.2 million and EBIT of CDN$0.2 to 0.3 million for the balance of Matrikon's fiscal year 2004. "The synergy between Matrikon and PI Automation is fantastic," stated Ian Brown, Managing Director of PI Automation. "We've proven that we can work together with key clients to deliver value. We are familiar with Matrikon's technology and have been their technology partner in Europe for two years. And we believe that our growth will accelerate backed by Matrikon's strength and reputation."By combining the companies' technologies, resources, geography and domain expertise, Matrikon is positioned to increase market penetration in the European market, which has been a targeted area of growth over the past year.Amin Rawji, executive vice president of Matrikon stated: "The combination of Matrikon and PI Automation is much more than the sum of the parts of the two companies. We have long felt that Europe offers tremendous potential and we are acquiring a partner with an existing footprint in Europe who is trained on Matrikon technology and is on an exciting growth curve. We are very excited about our future prospects together."About PI Automation LimitedPI Automation was established in 2001 and offers a range of services covering the full lifecycle of industrial systems design, build, commissioning and support complemented by web-based remote monitoring and plant performance applications to provide a one stop shop for plant automation. The company employs approximately 20 permanent and contract staff and boasts a strong reputation and customer base in Europe. Additional information on PI Automation can be found online at About Matrikon Inc. Matrikon is a leading supplier of industrial IT solutions specializing in web-based products and optimization solutions for the manufacturing and process industries. Matrikon is headquartered in Edmonton, Alberta with offices in a number of cities across Canada, the United States, Australia, and in the Middle East. Matrikon's client base includes industry leaders in a wide range of manufacturing and process industries.Note: Certain information contained in this news release is forward-looking and is subject to unknown risks or uncertainties. The actual results, performance or achievements of the Company may differ materially from the results, performance or achievements of the Company expressed or implied by such forward-looking statements.

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