Axiologix completes acquisition of iWorld Services
Axiologix, an international technology and services organisation focused on delivering 'Cloud' telecom products and services globally, has announced that it has completed the acquisition of iWorld Services, a market leader in delivering retail and wholesale VoIP services, products, and advanced web applications and software tools targeting high growth emerging markets.
Founded in 2007, iWorld Services is located in the San Francisco Silicon Valley area and provides market specific turnkey hosted solutions for VoIP resellers, distributors, and small medium businesses globally. It is a market leader in Africa, Middle East and is expanding to South America and Asia.
The initial consideration of $6 million consists of $750,000 in cash, $2,750,000 in loan notes payable quarterly after 12 months and $2,500,000 in Preferred shares of Axiologix, Inc. There is a potential for additional cash consideration of up to $4,500,000based on profitability of iWorld Services over the next three years. Axiologix drew an additional $1.75 million from its revolving line of credit with TCA to provide the cash portion of the transaction, cover transaction costs and provide working capital to fund growth of the business going forward. Full details of the transaction and financing have been filed at:http://www.otcmarkets.com/stock/AXLX/filings
The management team at iWorld is staying with the group post transaction, with Mr. Falchi transitioning from CEO to President of iWorld Services in a continuing role.
Mr. Falchi, President of iWorld Services said: "We are very pleased and excited with this acquisition by Axiologix as it will allow us to underpin our activities in the high growth emerging markets and provide the necessary marketing and technology experience to continue our expansion and to bring additional services and products to our existing 300 distribution and reseller partners going forward. We operate in a very fast moving and ever changing marketplace and being part of the Axiologix group, and their plans for further strategic and complimentary acquisitions, leads us to believe that we have chosen the correct time to sell to the correct partner to move the business forward."
Vincent Browne, Chairman and Chief Executive of Axiologix Inc. and iWorld Services said: "This is clearly a very significant event for Axiologix as we report the successful completion of this strategic and immediately revenue accretive addition to our business. We are impressed with the distribution network that iWorld has created over the years and also the specific technologies and the powerful multi-level network infrastructure they have developed to service the unique characteristics of these markets. We will be bringing additional products and services to these markets throughout the course of next year to improve revenues and gross margins from these valuable markets. It is also significant in that it shows our ability to close transactions using our current funding methods and will therefore make future targeted acquisitions more confident in our ability to close as we move to complete them in 2014."