CERTIVE ANNOUNCES ACQUISITION OF KNOWLEDGE CAPITAL Certive Solutions Inc., effective Aug. 31, 2014, has successfully completed the purchase of the assets comprising, among other things, material contracts, intellectual property, management contracts and employees of Knowledge Capital Alliance Inc. (KCA) with offices in Phoenix, Ariz. KCA has a 15-year history of providing business process management solutions to state and county governments, particularly specializing in business process management for public health-related matters. KCA is a credentialed and highly recognized vendor to Maricopa county, the third largest county in the United States. The assets acquired include all of the computer hardware and software necessary to conduct the business, the contracts that KCA has with its customers, the brand and logos of KCA, and all of the intellectual property used by KCA to conduct its business.
The purchase price for the assets was $579,300 (U.S.) and will be paid by as follows:
- The company will pay to KCA $72,000 (U.S.) in two equal tranches of $36,000 (U.S.), one payment due on or before Jan. 1, 2015, subject to the satisfactory transfer of all scheduled contracts, and the other due on or before Jan. 1, 2016.
- The company will issue to KCA a total of 900,000 common shares of its capital stock at a deemed price of 30 cents per share.
- The company shall assume the KCA obligation to a promissory note in the amount of $256,200 (U.S.) on the condition that the note is retired from the KCA cash flow.
KCA currently generates approximately $1-million (U.S.) in annual revenue, and has developed and sold a proprietary business process management solution to the third largest county in the United States. This work flow solution will be offered to 2,800 public health departments throughout the United States on a licensed basis.
The company entered into a transition services agreements with KCA effective June 1, 2014, and accordingly all of the financial affairs of both companies will be consolidated with that of the company's, effective June 1, 2014, insofar as the company had complete financial control of both enterprises as of that date.
Van Potter, chief executive officer of the company, stated: "This acquisition provides the company with a niche revenue opportunity in public health, leveraging both core business process management expertise and cloud solutions. The acquisition fits perfectly within our strategy in health care."