Texada Software buys two U.S. companies and gets $4M private placement

GUELPH, Ont. – Texada Software Inc. (TSXV:TXS), a company which provides software for equipment rental companies, has struck deals to buy two U.S. based businesses for about US$11.5 million.

The Guelph, Ont. company said Tuesday it has bought Rolls Scaffold & Equipment Inc., a Southern California-based aerial equipment rental business, for US$10.7 million.

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The other is DixEquip Inc., a Houston, Texas-based construction equipment dealership business, bought for about US$800,000.

“These transactions mark a very significant milestone for Texada,” said William Swisher, the company’s CEO. “The board of directors mandated that we seek out the best strategic transactions for Texada to generate additional shareholder value and secure Texada’s future, and we believe the SoCal and DixEquip acquisitions represent a compelling platform to successfully achieve this goal. The vertical integration of Texada into the equipment rental and dealership space will be an added benefit for all the company’s stakeholders, including our existing customer base and valued employees.”

In another development, Texada also announced a non-brokered private placement of up to 40 million common shares at 10 cents each to raise $4 million to help finance the U.S. purchases.