AirIQ Acquires Aircept Business

On June 29, 2004, AirIQ Inc., a leader in Telematics—the name given to the information and control messages sent wirelessly to and from vehicles—completed an acquisition of all of the assets of, LLC, based in Irvine, California, through a wholly-owned subsidiary of AirIQ. AirIQ and Aircept allow vehicle owners to manage and protect their mobile assets by providing products and services that include internet-based vehicle locating and disabling, boundary notification and unauthorized use alerts.

The asset purchase transaction was valued at approximately $23,769,000. The purchase price was paid in the form of approximately $6,750,000 in cash and 16,800,000 newly issued common shares of AirIQ at closing, a portion of which are held in escrow, with two additional cash payments of approximately $5,737,500, each upon the satisfaction of certain earn-out conditions.

AirIQ was represented by Blake, Cassels & Graydon, with a team that included Frank Arnone, Eric Moncik and Erica Young; and in the US by Farella Braun + Martel, with a team that included Bruce Deming and Samuel Dibble.

Aircept was represented by Peter Tennyson and Brandon Howald of Paul, Hastings, Janofsky & Walker.