EASTON, Pa., April 18, 2013 /PRNewswire/ -- SI Systems, Inc.,
a material handling systems solutions provider and a wholly owned
subsidiary of Paragon Technologies, Inc. (OTC Pink: PGNT), is
pleased to announce that it has acquired Innovative Automation Inc.
("IA"), a leading provider of warehouse control systems (WCS) and
warehouse management systems (WMS) solutions, based in San Diego, California. The acquisition
of IA represents a strategic shift for SI Systems as it begins to
transition its market strategy to the growing markets for enhanced
distribution and order fulfillment solutions.
IA brings the expertise and discipline around a "true versioned
product approach" in the WCS and WMS marketplace. The IA WCS
and WMS products bring a unique approach and solution to the
material handling software market. "A truly versioned
software product such as this fits well with the SI Systems model
and strategy of focusing on distribution through regional
integrators," stated Larry
Strayhorn, President and CEO of Paragon. "This will
enable SI Systems to expand its Order Fulfillment technology suite
and offering to a growing market segment."
"The acquisition of IA represents Paragon's commitment to
reestablishing SI Systems' presence in one of the most attractive
segments in the material handling industry, one of our goals since
we assumed control of the Company," stated Sham Gad, Chairman of
Paragon. "The upfront cash outlay will be funded by working
capital and paid out as installments, with the remainder of the
cash consideration to come in the form of royalties on future sales
and margin targets."
"Everyone wins from this deal," added Mr. Gad. "SI Systems
gets a dynamic product to enhance its services to its customers, IA
gets the added technical, marketing, and sales capabilities of SI
Systems, and the earn-out structure ensures that Paragon will grow
for our shareholders along with future payments. I commend
the efforts of our executives and directors in this process."
About Paragon Technologies
Paragon Technologies, Inc. is a holding company with
diverse business activities. Currently, the Company's
operating subsidiary, SI Systems, Inc., offers branded technologies
and material handling solutions that serve manufacturing operations
and order fulfillment applications. Paragon's other principal
business activity is investments in diversified businesses.
These investment activities include the purchase of securities in
accordance with the Company's investment policy and the complete
acquisition of operating businesses. Operating decisions for
Paragon's operating businesses are made by the management of those
businesses. Investment decisions under Paragon's investment
policy are made by Sham Gad, Chairman of the Board. All other
investments and capital allocation decisions are made by Mr. Gad in
consultation with Paragon's Board of Directors.
Cautionary Statement. Certain statements
contained herein are not based on historical fact and are
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995 and the Securities and
Exchange Commission rules, regulations and releases. Paragon
intends that such forward-looking statements be subject to the safe
harbors created hereby. Among other things, the
forward-looking statements regarding Paragon's
earnings, liquidity, financial condition, review of strategic
alternatives, and other matters. Words or phrases denoting
the anticipated results of future events, such as "anticipate,"
"does not anticipate," "should help to," "believe," "estimate," "is
positioned," "expects," "may," "will," "is expected," "should,"
"continue," and similar expressions that denote uncertainty, are
intended to identify such forward-looking statements.
Paragon's actual results, performance, or achievements could differ
materially from the results expressed in, or implied by, such
"forward-looking statements": (1) as a result of factors over
which Paragon has no control, including the strength of domestic
and foreign economies, sales growth, competition, and certain cost
increases; and (2) if the factors on which Paragon's conclusions
are based do not conform to its expectations. The
forward-looking statements contained in this press release may
become outdated over time. Paragon does not assume any
responsibility for updating any forward-looking statements.
Furthermore, achievement of the objectives of the Company is
subject to certain risks, including, but not limited to, those
risks outlined in Paragon's filings with the OTC Markets Group,
including its annual report for the fiscal year ended December 31, 2012.
Press releases are available at www.pgntgroup.com.
SOURCE Paragon Technologies, Inc.