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Artilium Acquires Location-Based Software Innovator Trisent Communications
Artilium plc (LSE/AIM: ARTA) (“Artilium” or “the Company”), a European leader in advanced telecommunications software is pleased to announce the acquisition of Trisent Communications Limited (“Trisent”). Trisent is a specialist in Location-Based Services (“LBS”) technology that enables mobile network operators to deliver services to subscribing customers based on the geographic location of their mobile phone.
The Directors believe that the Location-Based Services market represents an emerging and fast growing segment in the communications arena. According to research from Gartner Group, the total number of subscriptions to LBS in Western Europe, North America, Asia Pacific and Japan is expected to grow from 7m in 2006 to 298m in 2011. According to Strategy Analytics, in North America alone, end-user spending on location aware mobile services is expected to grow from $110m at the end of 2006 to $2.2bn by the end of 2011.
The Directors believe that Trisent’s technology will effectively complement Artilium’s own ARTA Service Delivery Platform to allow operators to rate, charge and deliver an array of services which combine location, presence, commerce and social networks, among other criteria. As a result, the Company believes it is positioned to take advantage of the opportunities presented by the evolving market segment.
Trisent’s technology provides network operators with the ability to offer real-time tracking services similar to GPS but without the need for satellites or the installation of other costly equipment on the network. The technology works by using standard phone handsets which the Directors believe offers several additional advantages over GPS. These include significant cost savings, lower battery requirements, increased indoor coverage (an advantage for social networking applications) and ‘always on’ status (whereas GPS can be turned off). This new technology, when added to the ARTA platform, will allow Artilium to offer a wide range of new functionality to new and existing customers.
Trisent is based in Dunfermline, Scotland and was founded by Dr Gordon Povey PhD, inventor of Trisent’s core Tri-Cell Intelligent Location System, who will remain with the Company as part of the terms of the acquisition. Trisent has been funded to date by Sigma Capital Group plc.
Trisent currently has a licensing agreement for its solutions with Max Telecom: a fixed and wireless telecommunications operator in Bulgaria. Max Telecom is currently using Trisent’s solutions to aid workforce management and fleet tracking and will expand this to offer mobile customers a wide range of location-aware services including personal security, lone worker protection and services industry employee deployment.
The consideration for the acquisition is £1.7m, which will be satisfied via a cash element of £460,000 and via the issue of 1,240,000 Artilium shares to Trisent shareholders. Of this amount, the issue of 301,875 Artilium shares will be deferred dependent on the achievement of certain prescribed development milestones. The consideration shares are all subject to orderly market undertakings. The number of Artilium shares in issue on completion of the acquisition (i.e. prior to the issue of any deferred element) will be 58,787,925. Application has been made for 938,125 new ordinary shares to be admitted to trading on AIM. It is expected that admission will take place on 14 February 2008. The new ordinary shares to be issued for the acquisition rank pari passu in all respects with the existing issued share capital.
As reported in its unaudited financial statements for the year ended 31 August 2007, Trisent reported a profit before tax for the period of £24,142 and had net assets at the period end of £64,541.
Announcing the acquisition Artilium Chief Executive Officer, Robert Marcus, said:
“Mobile presence is the most innovative revenue generating opportunity for network operators today. By combining location with presence and status, consumers can see the availability of the people they want to reach, mobile network operators can provide contextually aware services, and brands can better personalize mobile experiences. Add commerce to the mix and the vision and monetization of location-based services is truly realized.”
Confirming the value and application of Trisent’s technology Krassimir Stoitcheff, CEO of Max Telecom, commented:
“In our initial roll-out of Trisent technology in the business-to-business market, we have realised a cost saving of up to 25 times compared with GPS fleet tracking equivalents. We are very pleased with the Trisent technology and have hugely satisfied customers using it. We are excited about the opportunities for future services, revenues and the growth ahead.”
Dr Gordon Povey PhD, founder of Trisent welcomed the announcement of the acquisition and the combination of Trisent and Artilium technologies:
“I look forward to bringing Trisent’s location awareness technology to Artilium’s new wave of mobile unified communications services.”