TORONTO, ONTARIO -- (Marketwired) -- 06/03/13 -- GuestLogix Inc. (TSX: GXI), the leading global provider of onboard retail and payment technology to airlines and the passenger travel industry, today announced that the Board of Directors have concluded a wide-ranging strategic review process that was initiated on October 9th, 2012, to consider a full range of alternatives to improve the long-term position of the Company's stakeholders.
A special committee of independent directors (the "Committee") was formed to oversee the review process along with Canaccord Genuity Corp. as financial advisors, in which the Committee looked at multiple strategic alternatives including continuing the operation of the Company as-is with a focus on organic growth initiatives, the sale of the Company or synergistic M&A activity.
"Throughout the Strategic Review process, the Company executed well on its organic growth strategy and secured significant signings that dramatically improved both the short and long-term outlook of the Company," said Brett Proud, President and CEO of GuestLogix.
During the Strategic Review process, the Company announced several business achievements including:
-- Securing multi-year agreement with Finnair Travel Retail Oy-- Closing CDN $7 million financing deal-- Awarded U.S. Patent in relation to Company's Onboard Retail Technology-- Secured 10-year partnership with IFE System Leader Thales Avionics to facilitate transaction processing through seatback screens-- Successfully integrated UK-based, Initium Onboard into GuestLogix operations-- Secured multi-year agreement with European Airline Germania and its subsidiary, Gambia Bird-- Secured 4-year agreement with leading Asia Pacific Airline, Cathay Pacific and its subsidiary Dragonair-- Posted record quarterly revenue of US $7M in Q1 2013
"With the signing of our 10-year partnership with Thales and our announcement of our Panasonic Avionics partnership in September 2012, we have unlocked a strong future for the Company and have solidified both our market leadership status and growth potential," added Proud. "Along with our recent success within Asia Pacific, and the strengthening of our workforce in Toronto and across all three regions, the Company is now positioned to drive a new level of shareholder value."
The Committee concluded that the Strategic Review Process did not result in a transaction adequately reflecting the Company's value. The Committee noted that the recent reduction in headcount, termination of low-opportunity projects and new partnerships to extend transaction processing enablement to new access points, were all key contributors to their decision. The Committee also cited that the assessment of future corporate development activities can be best assessed and managed through the Company's internal management processes and through continued, effective communication with the full Board of Directors. As such, the Board of Directors has voted to conclude the formal process and the Company will move forward with a focus on organic growth.
"As will be the case going forward, we will remain open to reviewing all strategic opportunities as we continue to grow the business," said Proud.
GuestLogix Inc. (TSX: GXI), the leading global provider of onboard retail and payment technology brings over a decade of expertise as a trusted onboard transaction processing partner to airlines, rail operators and the passenger travel industry. GuestLogix helps its customers to create, manage, and control onboard retail environments tailored to their needs and their passengers for a truly personalized experience. The Company is partnered with global leaders in catering, duty-free and in-flight entertainment, offering complete onboard retailing services to airlines and rail operators worldwide. GuestLogix' global headquarters and centre for product innovation is located in Toronto, with regional head offices located in Dallas, London and Hong Kong. More information is available at www.guestlogix.com.
© 2013 GuestLogix. All Rights Reserved. ®OnTouch is a trademark of GuestLogix Inc. and is registered in the United States and may be pending or registered in other countries. All other trademarks and trade names are the property of their respective owners.
This news release includes certain forward-looking statements that are based upon current expectations including the anticipated benefits to GuestLogix of the acquisition of Initium Onboard, which involve risks and uncertainties associated with GuestLogix' business and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions "anticipate", "believe", "plan", "estimate", "expect", "intend", and similar expressions to the extent they relate to the Company or its management. The forward-looking statements are not historical facts, but reflect GuestLogix' current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations including that GuestLogix may not realize all of the anticipated benefits from the acquisition of Initium Onboard as well as the matters discussed under "Risks and Uncertainties" in the GuestLogix management's discussion and analysis filed May 15, 2013 with the regulatory authorities. GuestLogix assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements, other than as required by applicable laws.
VP Marketing, Communications & Investor Relations