BDStar closes $31M acquisition of BCDF-backed Rx Networks

Beijing BDStar Navigation Co., Ltd. (北京北斗星通导航技术股份有限公司) (SHE: 002151), through BDStar Investments (Canada) Co., Ltd., has completed previously announced acquisition of Rx Networks Inc. for $31 million of all cash consideration, subject to a 20% holdback of the consideration for a period of two years. The acquisition was announced on March 27 and closed on August 3, 2017.

Rx Networks distributed all the common shares of wholly-owned subsidiary Fathom Systems Inc. immediately before the closing of the transaction and former shareholders of Rx Networks are now direct shareholders of Fathom. Fathom specializes in beacon and Bluetooth-based indoor positioning technologies, transforming stand-alone beacons into a managed proximity network.

Founded in 2002, Rx Networks had raised $7.5 million from British Columbia Discovery Fund (VCC) Inc. (BCDF), VOXX International (NASDAQ: VOXX), TELUS Ventures, Texas Instruments.

BCDF, Rx and Fathom’s largest shareholder, received approximately $13.2 million of cash and Fathom securities from its investment cost of $5.5 million into Rx Networks.

As a result of the Rx transaction, BCDF will make the first distribution under its new model in the amount of $1.10 per share for approximately $5 million.

photo credit: BDStar

Ted Liu

Ted Liu, M.Sc. (Mining, Queen's), MBA (Finance, Toronto), is the Editor of Private Capital Journal, CanadaMetals.ca, TechWire.ca, and the former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, having most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA).

Ted is the architect of CVCA infobase, and is the architect of CPE Media's Financings.ca, Canada's most sophisticated and advanced all private capital and public market financing database.