8 Jun 2006
TORONTO - 06/08/2006 - Trimax Corporation and its wholly owned subsidiary, PLC Network Solutions Inc. (PLC) (OTCBB: TMXO), a leading provider of Broadband over PowerLine (BPL) communication technologies, are pleased to announce that further to its March 23rd Term Sheet, it has finalized the acquisition of international BPL systems integrator, Multi-Source Inc. (MSI)
By acquiring MSI, PLC gains an experienced operations team with a global prospective on the BPL space and decades of R& D expertise in the Electrical and Communication Industries. This, coupled with contract opportunities in the Automatic Meter Reading (AMR) and BPL Space, made MSI an excellent fit for PLC. This merger gives Trimax a strategic advantage in moving forward in its BPL deployments.
MSI has been cultivating several South American initiatives which are presently at the final governmental stages of consent. When the anticipated approval is concluded, the contracts have the potential to realize PLC/MSI significant revenues within the 2006 calendar year. Based on the scope of work, these contracts represent estimated revenue in excess of $100million US. Additionally, the company will realize annual recurring revenues from value added services. These large scale South American deployments will serve as a model for success for power utilities in other countries including North America.
Derek Pepler, President of Trimax/PLC, stated: “PLC's strategic plan is to grow the company both organically and through strategic acquisitions such as the 4600 room hotel portfolio it acquired this past week. Within this portfolio, PLC recognized opportunities to add revenue streams for the hotels through its value added services. PLC expects to increase its gross margins to 35% and grow the Hotel Division's revenues to $1million over the next 12 months. As well, MSI is an excellent match for PLC. We can immediately leverage each other's expertise, technology, resources and relationships to execute our strategic plan. MSI provides PLC with required talent including; Electrical Engineers with Fortune 500 experience, R&D engineers who developed rugged digital switches for North American Power Utilities, Senior Project Managers with track records in leading large technology deployments and Business Development / Tech Distribution and Sales over the past two decades throughout the Americas. With triple the manpower, PLC now has the additional resources it needs to capitalize on the many contracts, partnerships and acquisition opportunities we have been cultivating.”
Michael Spasov, CEO of MSI, commented: “Multi-Source is excited to be able to provide its years of experience in the BPL industry, its technology resources, personnel and business opportunities to PLC. We now have the opportunity to accelerate our initial BPL contracts with 3 utilities in South America and one metering contract in the U.S. In my new position as Chief Operating Officer of PLC we will provide better focus and execution of our strategy globally while Derek Pepler will lead with our common vision of delivering connectivity to the masses. This merger will benefit both companies and shareholder value for all.”