American Green Inc (OTCMKTS:ERBB) disclosed that it has finalized an acquisition deal with a Denver-based firm, TrackX, LLC. The acquired entity is a known name in the industry of RFID tracking and physical asset management solutions using cloud technology. It owns process patents and services designed to fulfill needs of numerous nationally recognized clients.
The new deal holds great significance for American Green as the global RFID industry has recorded strong growth in the last three years. In 2012, the worldwide RFID market was estimated at $6.96 billion which grew to $7.77 billion in 2013 and then reached $8.89 billion in 2014. The acquired entity TrackX holds a dominant position in the global RFID-enabled tracking and supply market. It has all the resources to transform into the next-gen platform for the IoT. The global RFID industry is expected to reach $14.4 trillion by 2022.
The management call
Stephen Shearin, the President, stated that the decade-long experience and expertise of TrackX in technology and dominant position in the growing market is accretive for the company. Under the new deal, American Green will provide all the help to TrackX in enhancing its services to customer and expanding the clients list. It will provide to customers in conducting their operations effectively and advance new business.
The scope in global RFID industry is huge and therefore American Green has given over three months to complete this critical acquisition deal. Tim Harvie, the CEO of TrackX stated that they have worked hard to create a strong customer base and develop the cutting-edge technology and related products.
Following the news, the stock price of American Green Inc (OTCMKTS:ERBB) surged more than 2.44% on Tuesday’s trading session and closed at $0.00420. The stock has a market capitalization of $18.63 million with 4.35 billion outstanding shares.