Intrinsyc Buying Destinator

Intrinsyc Software International Inc. (TSX: ICS) has agreed to acquire substantially all the assets of Destinator Technologies Inc., a Toronto-based maker of navigation software that had recently filed for bankruptcy protection. The deal is valued at around C$16 million, including C$8.5 million in cash and 11 common shares of Intrinsyc stock. Destinator had raised over $16 million in VC funding, from firms like AIG, VentureLink and Pac-Link Ventures.

 

PRESS RELEASE 

 

Intrinsyc Software International, Inc. (TSX:ICS), a global wireless software solutions provider, today announced that it has entered into an asset purchase agreement to acquire certain assets and operations of Destinator Technologies Inc. (Destinator), a provider of wireless software for global positioning system (GPS) devices and navigation software for wireless handsets. The acquisition is subject to court administered restructuring proceedings in Canada and the United States involving Destinator and certain of its affiliates and is expected to take six to eight weeks to complete.

The assets which, upon approval, Intrinsyc will acquire include a highly skilled wireless software development center in China, an advanced development center in Israel, existing navigation and wireless software products and seventeen patents granted or pending. Under the terms of the agreement Intrinsyc will only assume facilities for Destinator's two development locations, Beijing, China and Herzliya, Israel, and will not assume other financial liabilities of the company. Intrinsyc plans to integrate these technical operations, as well as selected key personnel in other functions, within the existing Intrinsyc leadership structure, thereby lowering operating costs and capturing synergies quickly.

“This transaction delivers critical engineering and development resources that will lower Soleus development costs and increase engineering capacity that will accelerate Intrinsyc's growth as a wireless software solution provider,” said Glenda Dorchak, Chairman and Chief Executive Officer of Intrinsyc Software. “Destinator has built a deeply talented technical team which has a proven track record in delivering wireless and handheld navigation software products. With the acceleration of the transition from standalone personal navigation devices (PNDs) to navigation in wireless phones and connected PNDs, we see a tremendous opportunity to marry their navigation technology with our Soleus software such that it will increase our addressable market and accelerate Intrinsyc's wireless software revenues. We also expect synergies with Destinator and Soleus customers which will expand the market opportunity for both product families.”

Destinator's customers include tier one Original Equipment Manufacturers (OEMs), such as Motorola, Inc., with whom they have collaborated in the development of navigation technologies for the MOTO Ming and MOTO ROKR E6 series mobile phones. Destinator navigation software is compatible with all major operating systems and can be easily customized to work on any hardware vendor's platform across the Windows