HOLLYWOOD, Fla., Dec. 9, 2019 /PRNewswire/ — Aluf Holdings, Inc. (“AHIX”) (“the Company”) (OTC PINK: AHIX) today announced the execution of non-binding Letters of Intent to acquire 100% of the outstanding stock of two privately-held companies for consideration consisting of cash, seller debt, and Aluf Holdings equity. This puts the Company at a total of four acquisitions, including Aluf’s existing CSPA to acquire a company, along with the recent acquisition of COLOTRAQ.
Proposed Transaction Highlights
The Terms of the Letters of Intent and CSPA’s contemplate a total consideration for these transactions consisting of $3 million in the issuance of Aluf Holdings stock; $19.4 million in cash; $12.1 million in 1, 2, and 3-year unsecured sellers notes. Closing these transactions is subject to completion of financing and customary closing conditions. Aluf expects to finance the cash contribution of the transaction through debt financing and through a Reg. D private placement under Section 506(c).
“The consummation of these acquisitions will immediately transform Aluf into a much larger company with annual revenues of approximately $39 million and EBITDA of approximately $14.5 million on a pro-forma basis for 2020″, said Dany M. Bouchedid, President and CEO of Aluf Holdings. “We are thrilled to present our shareholders with an opportunity to enhance the company’s current and future valuation as we execute the vision of becoming a leader in Next Gen technology while creating sustainable long-term value for our shareholders.”
About the Proposed Acquisition Targets
Target 1 is a premier biometric technologies company located in California with a 45-year history of consistent profitability in creating and providing biometrics technology sales and services to the government, law enforcement, and commercial industries. Average annual gross revenues of nearly $10M for the past five years are expected to increase by 25% annually over the next five years.
Target 2 is an end-to-end, multi-factor biometric digital identity authentication and management platform. Biometrics are expected to secure $2 trillion in payment transactions by 2023. Their platform is architected to be interoperable, working across different software platforms and industries, which puts them in a commanding position to capture a significant percentage of the $14.6 Billion biometric market by 2023.
Target 3 is a program management, consulting, integration, and custom software development services company. In addition, the Company focuses on Earned Value Management (EVM) solutions through the deployment of proprietary Software as a Service (SaaS) Integrated Program Manager (IPM) application. Target 3 also provides on-site staffing and consulting to support all aspects of program management, including, but not limited to schedule development, risk assessment, program reviews and audits, design and implementation of management dashboards and other related solutions.
Acquisition 1 COLOTRAQ is the first and largest broker and master agency specializing in data center infrastructure (DCI) solutions with an unrivaled network of direct agreements with over 400 service providers across 140 countries and territories. Their proprietary solution allows clients, including Fortune 500 companies such as Amazon and IBM, and government agencies such as U.S. Department of Homeland Security and Department of the Interior, or their representatives, to easily source Cloud, Colocation, Connectivity, and Cybersecurity services worldwide.
About Aluf Holdings, Inc.:
Aluf Holdings, Inc. is a publicly traded holding company whose core competency is to acquire, manage and propel “Next Gen” technology companies into the future. Our focus includes the Biometric, Blockchain, Cybersecurity, Cloud Computing, AI, Computer Vision and Software/Hardware verticals.
For more information go to www.aluf.com
Safe Harbor Statement:
This release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E and/or 27E of the Securities Exchange Act of 1934 that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company and the risks and uncertainties detailed from time to time in reports filed by the company with the Securities and Exchange Commission. Statements contained in this release that are not historical facts may be deemed to be forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, the company’s ability to raise necessary financing, retention of key personnel, timely delivery of inventory from the company’s suppliers, timely product development, product acceptance, and the impact of competitive services and products, in addition to general economic risks and uncertainties.
Aluf Holdings, Inc.
Chief Financial Officer