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Coreworx Inc. Acquisition of Decision Dynamics - FAQ
What is being announced?
Coreworx Inc. (“Coreworx”), a wholly owned subsidiary of Acorn Energy, Inc. (“Acorn”)(NASDAQ: ACFN) and Decision Dynamics Technology Ltd. (“Decision Dynamics” or “DDY”) announced that they have entered into a definitive agreement pursuant to which Decision Dynamics will become a wholly-owned subsidiary of Coreworx, subject to the approval of the companies’ respective boards of directors, and approval by DDY shareholders and applicable regulatory authorities.
When will this transaction be finalized?
We expect the transaction to be finalized in April or May of 2010
Why are we making this announcement before the deal is finalized?
Acorn Energy, Inc. (Coreworx’s parent company) and DDY are both publically traded companies and, as such, are required by securities laws to publically disclose matters concerning their companies that are considered material by securities law.
Why does this deal make sense?
DDY’s business and products are very complimentary to Coreworx Project Information Control platform and will provide an additional level of control over project costs that our customers have been requesting and will find very valuable. We are very excited to be able to offer this capability to our customers and prospects. Once, the deal is finalized our product teams will work closely together to create and publicize a joint product roadmap.
Can you provide an overview of Coreworx or DDY?
DDY is a premier supplier of Project Controls software for accurate, real-time, project cost and progress visibility. See http://www.ddytech.com/ for more details.
Coreworx Inc. provides integrated project execution and information control solutions for mega capital projects in the oil & gas, power and mining sectors. See http://www.coreworxinc.com/ for more details.
Does this change the target markets Coreworx Inc. or DDY is focused on serving?
No it does not. DDY operates very much in the same markets as Coreworx does today.
Will Coreworx Inc. be making further acquisitions in the future?
Coreworx will make acquisitions from time to time as we continue to grow our product lines in the normal course of business. We will announce any future deals as appropriate and required by governing securities law. We are not announcing any additional acquisition activities at this time.
How much did Coreworx Inc. pay for DDY?
As disclosed in the Press Release, under the terms of the agreement, Decision Dynamics’ shareholders will receive an aggregate of 1 million common shares of Acorn.
How will this affect DDY’s customers?
DDY customers will continue to enjoy the same close relationship with the combined Coreworx/DDY that they currently have with DDY. We believe that our customer service and relationship management will only be enhanced as the combined organization will have a much larger set of resources to service their current and future customer needs.
How will Coreworx Inc. and DDY partners benefit?
Channel delivery partners of Coreworx and DDY will have access to a functionally richer and, more strategic overall solution to deliver to their existing markets providing a stronger “value-add” market message. In addition, as DDY operates very much in the same markets as Coreworx does today, Coreworx and DDY channel delivery partners will have greater sales cycle efficiencies by delivering a stronger sales message to a familiar market base. A plan to introduce the DDY functionality to the channel delivery partners of Coreworx and, to combine DDY with their offering, and vice-versa will be forthcoming after the deal is finalized.
Will you consolidate locations?
At this time there is no plan to consolidate offices, and no plan to close the Calgary office. In fact, Coreworx already has several employees in the Calgary area, and believes that it is important to have a significant presence in the Calgary area, close to several key customers and many industry leaders.
How does the composition of the Coreworx Inc. Board of Directors change?
The composition of the Coreworx Inc. Board of Directors will not change as a result of this merger.
How does the composition of the Acorn Energy’s Board of Directors change?
The composition of the Acorn Energy’s Board of Directors will not change as a result of this merger.
Will DDY still operate under its current name or will it use Coreworx?
Once the deal is finalized we will release details about any changes to the corporate and/or product line brands of Coreworx Inc. and DDY.
