As many investors and traders already know, a micro-cap company announcing a Letter of Intent (LOI) to acquire another company or enter some kind of partnership can often be meaningless. It's not uncommon for these smaller companies to announce LOIs with no intentions of making the necessary preparations for a future, definitive agreement.
Why do they do this? Often because they don't have much going on and must put out some kind of exciting news to keep existing investors from drawing out their funds, and to attract additional investment from new investors so they can continue paying management salaries they don't deserve. It's important investors are aware of this typical strategy to artificially stir up investor interest, and most importantly, take time to look over their history of press releases to see if they followed through with LOIs previously announced.
In March of this year, SilverSun Technologies announced the signing of an LOI to acquire the assets of HighTower, a leading Chicago-based reseller of Sage software applications and a publisher of proprietary business management software enhancements. Just last week, the company reported the finalization of the acquisition, which is expected to bring in approximately $3 million in additional annual revenues (based upon 2011 results), approximately 870 additional Sage ERP customers, an impressive suite of proprietary enhancement software solutions (with approximately 700 users), and a much deeper market penetration in the Midwest.
The company also announced this month the asset purchase of Micro-Point, a Westchester, New York-based managed service provider and reseller of Sage Software products. In addition to being a Sage reseller, Micro-Point has expertise as a hosting and computer services provider. The addition of their business is expected to contribute more than $600,000 in annualized revenue to SilverSun and be immediately accretive to the company's earnings. This is the third acquisition SilverSun has made this year.
In a market full of empty promises, SilverSun stands out as a true gem. For more information on the company and its growth strategy, visit silversuntech.co
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