Grey Island Systems International, a provider of Internet-based Automated Vehicle Location and Telematic systems, has finally closed its previously announced acquisition of NextBus Information Systems Inc. of Alameda, California. The asset purchase transaction was conducted through NextBus Inc., a newly created wholly owned subsidiary of Grey Island Systems International Inc.
NextBus Inc. has retained the staff and facilities of NextBus Information Systems Inc. With the addition of the NextBus, Grey Island Systems International Inc., through its 3 wholly owned subsidiaries, Grey Island Systems Inc., Interfleet Inc., and NextBus Inc., employs approximately 50 people in 3 facilities located in Toronto, New York and the San Francisco Bay Area.
Total consideration for the assets NextBus consisted of US $700,000 in cash, 1,000,000 warrants exercisable into 1,000,000 common shares at a price of $0.50 per share expiring 2 years from the closing date, and a subordinate non-interest bearing convertible promissory note in the amount of CDN $2,250,000, convertible into shares at $0.325 per share. NextBus reported annualized revenues of US $2.9 million for the year 2004 (un-audited). Grey Island said NextBus currently has contracted future revenues in excess of US $7 million. NextBus uses GPS tracking satellites to provide vehicle arrival information and real-time maps— not just bus schedules — to passengers and managers of public transit, shuttles, and trains.