Inpixon (INPX) Stock: Gaining In Multiples On Acquisition News

Inpixon (NASDAQ: INPX) is having an incrediblys trong start to the trading session this morning, and for good reason. The company announced an accretive acquisition, exciting investors and sending the stock screaming for the top. Toay, we’ll talk about:

  • The acquisition news;
  • what we’re seeing from INPX stock as a result; and
  • what we’ll be watching for ahead.

INPX Announces Acquisition News

As mentioned above, Inpixon is having a great day in the market today, gaining in multiples early on. So, what’s the deal? The company announced that it would be acquiring another.

In a press release issued early this morning, the company announced that it signed a non-binding term sheet to acquire Locality Systems. Locality Systems is a tech company that specializes in wireless device positionining and radio frequency augmentation of video surveillance systems.

INPX said that it is expecting for the acquisition to be accretive and that the purchase will be made through a combination of cash and equity. In a statement, Nadir Ali, CEO at INPX, had the following to offer:

We’re excited at the prospect of combining Locality Systems within the Inpixon family. Locality’s visitor information solution fits nicely into our IPA Intelligence line-up as a Wi-Fi-only offering that complements our IPA Sensors.

Its enhanced video surveillance solution combines strategically with our sensor fusion and video integration product enhancement initiatives to deliver a powerful Security Dome product.

The above statement was followed up by Kirk Moir, CEO at Locality Systems. Here’s what he had to say:

I believe Inpixon will be a great home for our location intelligence technology. I believe we will be one of very few companies, in a global $36 billion video surveillance market, to offer Wi-Fi, Bluetooth and cellular detection integrated with deployed video security platforms.

I anticipate our current and prospective location intelligence partners will be able to use these new capabilities to differentiate their offerings and to solve some tough problems that can only be addressed by going beyond standalone and Wi-Fi-only detection.

Finally, Soumya Das, COO at INPX, had the following to add:

Most security cameras pick up only that which is visible to the eye. Inpixon’s Security Dome RF detection enables one to see the unseen. I expect we’ll have significant cross-selling opportunities within Inpixon’s government and security customers who will be excited to adopt the new capabilities that we will be able to offer following the planned acquisition of Locality Systems.

What We’re Seeing From The Stock

One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to Inpixon, the news proved to be overwhelmingly positive.

Should this acquisition take place, it will lead to immediate growth in value for the stock as it will open the door to strong revenue opportunities. So, it’s not surprising to see that excited investors are pushing the stock on a run for the top.

As is just about always the case, our partners at Trade Ideas were the first to alert us to the gians. Currently (9:50), INPX is trading at $1.69 per share after a gain of $0.89 per share or 111.78% thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on INPX. In particular, we’re interested in following the story surrounding the company’s continued work to expand its offering and bring value to investors. Nonetheless, we’ll keep a close eye on the story and bring the news to you as it breaks!

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