Mergers & Acquisitions

Mergers & Acquisitions

July 22, 2011

myFreightWorld Technologies Acquires Informed Logistics Technologies

myFreightWorld Technologies Inc., a business services firm providing technology, transportation and supply chain management services, signed an agreement to acquire 100% of Informed Logistics Technologies, LLC (ILT), the founding information technology company.

As indicated, the ILT acquisition is valued at over $6,000,000.

"MYFT has had the option to acquire 51% of ILT since the original acquisition of the myFreightWorld Contract Management group. I'm pleased to report that we have structured an agreement to acquire 100% of ILT. Combining ownership was always our intention as soon as we achieved positive Earnings Before Income Taxes, Depreciation and Amortization (EBITDA), which we did in May,” J. Michael Head, chief executive officer of myFreightWorld said in a press release.

“This acquisition ensures that MYFT controls the technology development going forward, in addition to eliminating the substantial fees that were paid to ILT for ongoing software system rights. Our audit and finance team recommended this transaction in order to consolidate the financial statements before the completion of the audit," Head added.

Mentioning the company's financial audit, Head said that the undertaking to complete a comprehensive, financial audit has required every company department to fully examine and report on an extensive pre-audit checklist. Management continues to diligently work towards completing all financial reporting as evidenced by the timing of ILT acquisition. Head also said that his company’s commitment to becoming a full-reporting entity, and eventually up-list MYFT, remains firm.

Head clarified that myFreightWorld’s executive team is focused on the long term goals of the company as further evidenced by the fact that it is at the completion stage of its fund raising efforts, which will ensure the completion of the financial audit and the continued growth of the organization.

“Please note that our executive team and I are well aware of the short-term negative impact that our share price has endured during our recent 'quiet period' and the delay in the completion of our financial audit. However, our focus remains on the long term, as we hope that it is for all shareholders. I'm confident that those shareholders who continue to be patient will be rewarded. Let's not lose sight of the fact that we achieved positive EBITDA despite challenging economic times, plus we now own our technology base,” Head added.

Head believes that the acquisition of ILT not only adds tremendous value, but its technology will drive myFreightWorld’s value in the future.

Meenakshi Shankar is a TMCnet contributor. To read more of her articles, please visit her columnist page.

Edited by Rich Steeves

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