KIOSK (KIS) acquired by Posiflex
Editor Note: The acquisition of KIOSK by Posiflex is official. In a blockbuster deal Posiflex is expanding from its historical POS transactional market into the self-service kiosk market in a huge way. With a Posiflex market cap of over $11 Billion, KIOSK becomes part of a company over twice the size of NCR, the other major kiosk player.
From our vantage point this acquisition will provide all types of advantages to KIOSK and help it grow market share faster. KIOSK had been purchased by Alerion Capital three years and their principal aim seemed to be to accelerate the profit and then turn the company after three years. I expect Posiflex will make some very positive investments which should allow KIOSK to truly become the dominant state-of-the-art manufacturer. We spoke with Weaver and yes he is staying (and we expect the COO Dan Houck will stay as well). Well played!
NEW TAIPEI CITY, Taiwan–(BUSINESS WIRE)–Taiwanese Point-of-Sales terminal brand leader Posiflexannounced today that they have entered into a purchase agreement with KIOSK Information Systems (KIOSK), a world leader in self-service solutions. Posiflex will offer KIOSK a cash purchase for all outstanding ordinary shares, for a total consideration of approximately $US 105 million. Both companies are industry forerunners known for best-in-class POS and self-service platforms. Combining these complementary strengths positions Posiflex for continued growth tied to emerging “Internet of Things” (IoT) applications within the service automation industry.
“By combining Posiflex and KIOSK’s dual-value proposition in this domain, we are confident in emerging as the leader in this growing market.”
Retailers, financial service providers, hospitality and logistics service providers are key among an even wider industry audience driving steady and steep demand in transaction automation. Deployers are increasingly incorporating self-service as a “must-have” element of today’s Omnichannel consumer experience; increasing touch points, reducing costs – all while simultaneously collecting valuable transaction data. KIOSK is unique among its’ competitors in its ability to provide a complete end-to-end solution encompassing custom design engineering, manufacturing, software development, field services, and highly secure managed services. This “total solution” approach to services has fueled KIOSK’s continued growth and reinforced analyst’s rankings of KIOSK as the dominant North American provider and #3 globally.
As the IoT is driving improved asset utilization, better logistics management, and better customer experiences, self-service automation platforms become an increasingly integral element of Omnichannel sales strategies. Utilizing IoT data from transactions provides valuable insight for customer-specific data collection and enables customized point of sales marketing. Posiflex CEO Owen Chen adds that, “By combining Posiflex and KIOSK’s dual-value proposition in this domain, we are confident in emerging as a distant leader in this growing market.”
Post-transaction plans are to retain and empower the current KIOSK Management Team with no operational or organizational restructuring required as result of the transaction. Tom Weaver, KIOSK’s current CEO, will now hold dual Board of Director roles for both Posiflex and KIOSK. This will accelerate efforts of the current management team to execute KIOSK’s strategic growth plans, leveraging key Posiflex resources. Access to a global sales network and highly relevant engineering / integration capabilities are among many strategic leverage points created by combining the companies.
Leveraging Posiflex’s international channel reach throughout Greater China, Asian Countries, Russia, India, and Europe; KIOSK is uniquely positioned to ensure sustainable market growth not only in North America, but also the global marketplace. Further, Posiflex will provide substantial advantage for KIOSK tied to upgrading critical components and peripheral modules. This ultimately enhances KIOSK’s future solution offerings with even more advanced product and service coverage capabilities.
KIOSK CEO Tom Weaver adds, “We firmly believe that joining forces with Posiflex fully supports our growth objectives and represents the best interests of our customers and employees. Having overnight access to Posiflex’s international presence and complementary technology resource adds distinct competitive advantage and differentiation. This combined scale opens new doors to growing world markets and further advances KIOSK’s ability to provide comprehensive and state-of-the-art solutions.”
This transaction was advised by KPMG Corporate Finance LLC, and is expected to close in 2016-Q3.
Founded in 1984, Posiflex Technology, Inc. has designed and manufactured its own-branded and world-class POS solutions. Recognized as a pioneer and leader in the industry, Posiflex has been awarded more than 30 patents for innovative design. The company’s products are manufactured in two ISO 9001/9002/14001 facilities in Taiwan and sold worldwide through retail, hospitality, banking, healthcare, kiosks and many other verticals. Posiflex’s offices are in the USA, Germany, China, India, Singapore, Malaysia, Japan, Dubai and Argentina along with the global distribution networks to provide direct and timely support to its customers around the world. For more information: www.posiflex.com.
About KIOSK Information Systems:
As the Market Leader in Self-service Solutions, KIOSK provides proven expertise in design engineering; application development, integration, manufacturing, field support, and managed services for even the most sophisticated self-service platforms. An exceptionally broad portfolio of standard and custom KIOSK designs are deployed among Top 100 Retailers and Fortune 500 clients in virtually all self-service vertical markets.www.kiosk.com, 800.509.5471.
Cheryl Madeson, 303-661-1648
TAIPEI — Posiflex Technology Inc. (振樺電子), a Taiwan-based Point-of-Sales terminal brand, has agreed to acquire KIOSK Information Systems in the United States, the largest self-services solution provider in North America.
Under the acquisition agreement, Posiflex will spend US$105 million to acquire KIOSK, marking the largest acquisition deal in the industrial computer sector in Taiwan. Posiflex’s board of directors has approved the acquisition.
Market analysts said that the deal showed Posiflex’s ambitions to expand by swallowing a large company like KIOSK; the consideration of the deal is almost five times the Taiwanese suitor’s paid-in capital.
According to the Taiwan Stock Exchange, Posiflex is capitalized at NT$676 million (US$21.6 million), and had started procedures for listing on the local main board since November 2012. Before the main board’s listing, Posiflex had been listed on the over-the-counter market since July 2005.
Commenting on the acquisition deal, Posiflex said that KIOSK ranks as the third largest self-services solution provider in the world. The U.S. firm’s clients come from a wide range of industries globally, like telecom services, retail, logistics and financial services, Posiflex said.
Among the prominent clients of KIOSK are AT&T, IKEA, PepsiCo., McDonald’s and U.S. Postal Services, Posiflex added.
The suitor said that the acquisition agreement was reached because KOISK’s major shareholder, a private equity fund, was planning to dispose of the U.S. firm for profit. Through the acquisition, Posiflex said that it expects to enter the self-services business by taking advantage of the suitor’s existing lead in the Point of Sales terminal technology.
In the past three years, KIOSK posted more than 30 percent in compound annual growth rate (CAGR) with its gross margin ranging between 35 percent and 40 percent, Posiflex said. In the first seven months of this year, KIOSK’s earnings before interest, taxes, depreciation and amortization topped US$7 million, Posiflex added.
Analysts said that after the acquisition, Posiflex is expected to see its revenue for next year double from this year. In the first seven months of this year, Posiflex posted NT$1.78 billion in consolidated sales, up 6.18 percent from a year earlier.
“By combining Posiflex and KIOSK’s dual-value proposition in this domain, we are confident in emerging as a distant leader in this growing market,” Posiflex Chief Executive Officer Owen Chen said in a statement.
Posiflex said that it will assign its own funds to pay for 20 percent of the total consideration in the deal, while it will be seeking bank loans to pay for the remaining amount. The company said that it could issue new shares and convertible bonds to repay its bank loans in the future.
After the acquisition is completed, Tom Weaver, KIOSK’s current CEO, will hold dual board of director roles for both Posiflex and KIOSK.