DecisionPoint Systems, Inc., a prominent player in mobility-first enterprise services and solutions, has announced a significant development in its corporate trajectory. The company, known for its expertise in retail in-store solutions and services centered on Point-of-Sale systems, disclosed on May 1, 2024, that it has entered into a definitive agreement to merge with an affiliate of Barcoding Holdings, LLC (“Barcoding”), a portfolio company of Graham Partners, in an all-cash transaction.
Steve Smith, CEO of DecisionPoint, expressed enthusiasm for the merger, emphasizing its alignment with DecisionPoint's growth strategy. “We’ve spent the past seven years rebuilding and repositioning DecisionPoint as a leader in the mobility-first enterprise space and, over the past year, significantly expanded our market opportunity within retail and services by acquiring Macro Integration Services.”
The merger agreement entails that DecisionPoint stockholders will receive $10.22 per share in cash, marking a premium of approximately 27% over the closing price on April 30, 2024. This offer reflects a year-to-date return of 63% over the closing price on the last trading day of 2023.
Upon completion of the transaction, DecisionPoint will transition into a privately held entity, ceasing public trading of its stock. However, the company will retain its name and brand identity, continuing operations under the DecisionPoint Systems banner.
Mike Stewart, Principal of Graham Partners, underscored, “We are excited about the combination of Barcoding and DecisionPoint, which brings together two experienced management teams and creates an integrator of scale in supply chain automation. Furthermore, the combined business is anticipated to enhance the value proposition for customers, adding service offerings across a customer’s device life cycle and establishing a national footprint.”
The merger has garnered unanimous approval from DecisionPoint's board of directors, who have recommended that stockholders vote in favor of the agreement. A special meeting will be convened for shareholders to cast their votes, with the transaction expected to close in July 2024, pending regulatory approval and fulfillment of customary closing conditions.
DecisionPoint's legal counsel for the transaction is Craig-Hallum Capital Group LLC, providing a fairness opinion to the board of directors. Polsinelli PC and Cole Schotz P.C. are also involved in legal advisory roles. On the other side, Barcoding and its sponsor, Graham Partners, are represented by Dechert LLP.
DecisionPoint Systems, Inc. specializes in delivering mobility-first enterprise managed services and solutions, catering to various verticals including retail, supply chain, hospitality, and healthcare. Barcoding Holdings, LLC, founded in 1998, is a leading player in supply chain automation and innovation, offering solutions in data capture, labeling and printing, and mobile computing. Headquartered in Baltimore, MD, Barcoding operates across North America with multiple offices.
This merger signifies a pivotal moment for both DecisionPoint and Barcoding, paving the way for enhanced capabilities and expanded market reach in the realm of enterprise solutions and supply chain automation.
