Rogers, AR (March 13, 2017) – Ecoark Holdings, Inc. (“Ecoark”)(OTCQX: EARK), today announced that it has completed a non-binding term sheet to acquire 440labs in an all-stock transaction. 440labs is a software development and information solutions provider for cloud, mobile, and IoT applications. 440labs has been a key development partner with Zest Labs for more than four years, contributing its expertise in scalable enterprise cloud solutions and mobile applications.
440labs’ experienced leadership and engineering teams will augment Zest Labs’ development of modern, enterprise scale solutions that robustly connect to distributed IoT deployments. 440labs blends onshore/offshore resources to optimize development and provide extended runtime operations coverage, critical to broad-based deployments.
“We are excited about the opportunity to acquire 440labs, who has been a valued collaborator in the Zest Fresh development,” said Peter Mehring, CEO of Zest Labs. “440labs significantly expands our expertise and enhances development bandwidth.”
“The 440labs acquisition is consistent with our disciplined capital deployment strategy, which results in the acquisition of high performing niche businesses that grow and compound our cash flow,” commented Randy May, CEO of Ecoark Holdings. “440labs is a terrific company with clear leadership in its niche market, strong technical expertise with numerous growth opportunities, and a management team that will thrive as part of Zest Labs.”
The 440labs leadership team, headed by Scott Durgin, will continue to manage its business and global team of professionals. The 440labs name, brands, and office locations will not change as a result of the transaction.
Acquisition Financing and Financial Outlook
The acquisition will be funded by an all-stock agreement, which Ecoark plans to issue upon completion of a definitive agreement. The Company expects the transaction to have limited impact on 2017 EPS due to non-cash amortization expense, the extent of which has not yet been determined. The transaction is expected to close prior to the end of this quarter.
About Zest Labs:
Zest Labs, a subsidiary of Ecoark Holdings, Inc., provides a growing suite of freshness management solutions that substantially improve quality consistency and drive sustainability for a wide range of clients. Zest Labs provides solutions to modernize the existing food distribution and delivery system by significantly increasing efficiency through continuous condition monitoring and real-time prescriptive analytics.
About Ecoark Holdings Inc.
Based in Rogers AR and founded in 2011, Ecoark Holdings, Inc. is a growth-oriented company based in the retail and logistics hub of Northwest Arkansas. Ecoark’s portfolio of technology solutions increase operational visibility and improve organizational transparency for a wide range of corporate clients. Ecoark’s technologies fight waste in Operations, Logistics, and Supply Chains across the evolving global economy. Ecoark’s portfolio of companies and technologies work to integrate people, processes, and data in order to overcome ingrained operational hurdles and create new revenue streams. Ecoark’s vision is to expose the cycles of waste that reduce efficiency and cost effectiveness across the business landscape. Ecoark’s strategically acquired subsidiaries have anticipated and responded to key economic factors impacting every business today. Ecoark addresses these vital economic factors through four active subsidiaries, Zest Labs, Eco3d, Pioneer Products, Magnolia Solar and now 440labs. For more information, please visit http://www.ecoarkusa.com/.
Forward Looking Statement
This release contains forward-looking statements, including, without limitation, statements concerning our business and possible or assumed future results of operations. Our actual results could differ materially from those anticipated in the forward-looking statements for many reasons including our ability to continue as a going concern; adverse economic changes affecting markets we serve; competition in our markets and industry segments; our timing and the profitability of entering new markets; greater than expected costs, customer acceptance of our products or difficulties related to our integration of the businesses we may acquire; and other risks and uncertainties as may be detailed from time to time in our public announcements and SEC filings. Although we believe the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made, and our future results, levels of activity, performance or achievements may not meet these expectations. We do not intend to update any of the forward-looking statements after the date of this document to conform these statements to actual results or to changes in our expectations, except as required by law.