Geoforce, Inc., the largest provider of GPS asset tracking solutions for the oil and gas industry, announced that it has acquired Sypes Canyon Communications, Inc. (SCC) – an innovative leader in the design and manufacture of satellite machine-to- machine (M2M) and telemetry products for government and commercial clients. The transaction was effective September 1, 2012 and has resulted in all operations of Sypes being absorbed into Geoforce and remaining in Bozeman, Montana. Terms of the transaction included cash and equity in Geoforce, Inc. for Sypes' shareholders.
Sypes Canyon has been partnering with Geoforce to design and build Geoforce's new GT-1 Satellite Tracker, the first IECEx globally certified, rugged GPS asset tracking device designed specifically for the oil and gas industry. Geoforce's GT-1, to be commercially available in Q4 2012, is expected to revolutionize the way companies in the oilfield manage their assets. In addition, Sypes is the developer of the ZEMO and MYTE satellite transmitters. The MYTE is the smallest commercial satellite transmitter ever built and will unlock new GPS tracking and machine-to-machine (M2M) opportunities in both the private and public sectors – starting with the GT-1.
"During the past 18 months, as we've worked with the team from Sypes, we've gotten to know, like, respect and trust them," said James MacLean, III, President and CEO of Geoforce. "During this period, it became increasingly clear there were many benefits to combining. We expect this deal to help Geoforce continue to fuel its growth that has seen us double in size every year since we were founded."
"As long time industry veterans, we know when we see a winner," said Scott Rosenzweig, President of Sypes Canyon Communications, who will become Vice President of Business Development at Geoforce. "Geoforce has a culture that emphasizes innovation and customer focus - all the while maintaining an open and enjoyable working atmosphere. We wanted to be part of that team and its continuing and inevitable success."
"This deal makes sense for us on multiple fronts," said Vincent Hsieh, CFO of Geoforce. "We're bringing on board some of the best talent in the industry. We get some new and valuable intellectual property. We gain total control of the hardware development side of our business – much as we brought our software development in house several years ago, which has paid off enormously. We get access to expanded markets outside of Oil & Gas. And financially this is a win-win for both sides."
"From a technology standpoint, the deal is a perfect fit that blends our expertise in the design and manufacture of enabling core technology with Geoforce's potent cloud based software platform and total service delivery," said Gary Naden, co-founder and CTO of Sypes Canyon, who will become Chief Technology Officer at Geoforce. "Oil & Gas customers now have even more reason to rely on Geoforce, and we look forward to opening new markets for Geoforce products and services."