Vertex Interactive Acquires Cape Systems Group; A 2004 Top 100 Logistics IT Company; Vertex Receives $1.85 Million in New Financing
SOUTH PLAINFIELD, N.J.--(BUSINESS WIRE)--Jan. 13, 2005--Vertex Interactive, Inc. (OTCBB:VETX), a provider of software technology for warehouse management and order fulfillment, today announced that it had acquired the Cape Systems Group, a 2004 Top 100 Logistics IT company, an annual award made by the magazine Inbound Logistics, for $2 million in cash. Financing in the principal amount of $1.85 million was provided by certain institutional investors in connection with this acquisition. The Company was represented by Sichenzia Ross Friedman Ference LLP (www.srff.com) in this transaction.
Cape Systems is a provider of palletizing and packaging configuration, and truck/container loading software that improves pallet and truck utilization, and reduces packaging, storage and transportation costs. Its customer base, numbering approximately 3,700, includes such industry giants as Wal-Mart, Sam's Club, Kraft, Nestle, Procter & Gamble, Smurfit-Stone, Coca-Cola and thousands of others around the world.
The combined companies' broader scope, cross-marketing opportunities and increased innovation, are expected to increase revenues significantly by fiscal-end September 30, 2005. It is intended that the combined company will operate under the Cape Systems name.
Peter Ayling, Chief Executive Officer of Cape Systems will be appointed to the position of Vice President, Group Marketing and Brad Leonard, Vice President of Sales of Cape Systems will be appointed to Vice President, Group Sales.
The enlarged company will continue to serve customers from its primary offices in Allen, TX; South Plainfield, NJ; and the United Kingdom; as well as through a reseller network spanning five continents.
"Cape and Vertex software solutions and tools already have a proven ability to improve customer revenues and profits through supply chain efficiencies. By combining our knowledge and experience, we believe we will vastly improve our ability to take innovation in supply chain systems and tools to the next level," stated Peter Ayling, CEO of Cape Systems. "Our emphasis in the coming months will be to offer customers our expanded software menu that helps them achieve cost savings quickly, and is scalable and configurable for longer-term efficiencies," Mr. Ayling added.
"The combination of CAPE Systems and Vertex Interactive is a milestone in supply chain technology, creating an organization that provides our customers with the full range of leading-edge palletizing and packaging configuration, warehouse management and order fulfillment software systems. Both companies have an outstanding record of innovation, functionality, ease of implementation and integration. With our combined strengths, the sky's the limit in terms of empowering our customers to drive the bottom line through improved supply chain performance. We welcome the Cape team to Vertex and look forward to working with Peter and his people to maximize the unique opportunity before us," stated Nicholas Toms, CEO of Vertex.
About Vertex Interactive
Vertex Interactive is an international provider of supply chain management technologies. Vertex offers a comprehensive range of software systems and tools, from point solutions, to integrated end-to-end hardware and software solutions, for enterprise wide and collaborative supply chain optimization.
Certain statements contained herein may be forward-looking in nature and are therefore subject to risks and uncertainties that could cause actual results to differ materially. The Company's recent acquisition history, progress toward completing the integration of its acquisitions, history of operating losses, current expense levels compared with its sales, and the state of development of its product portfolio, coupled with the overall economic and competitive operating environments pose a number of risks investors should take into consideration in connection with assessing our financial and operating results. A more detailed discussion of these and other important risk factors can be found in the documents filed with the Securities and Exchange Commission on forms 10-K and 10-Q. Towards the end of each fiscal quarter, Vertex Interactive will have a 'Quiet Period' when Vertex Interactive and its representatives will not comment concerning previously published financial expectations, and we disclaim any obligation to update during the Quiet Period. The public should not rely on previously published expectations during the Quiet Period. Investors should not expect that these forward-looking statements will be updated or supplemented as a result of changing circumstances or otherwise, and Vertex Interactive disavows and disclaims any obligation to do so.
Lori Fabisiak/Len Bacharach