COCONUT GROVE, Fla. - NextPlat Corp (NASDAQ: NXPL), a global e-commerce provider, has announced the acquisition of Outfitter Satellite Inc., a move set to significantly enlarge its North American technology e-commerce product sales and recurring revenue. The all-cash deal is expected to close on April 1, 2024.
Outfitter Satellite, based in Nashville, Tennessee, has been a supplier of satellite connectivity solutions to a diverse customer base, including consumers, commercial entities, and government agencies, for over two decades. The acquisition is projected to more than double NextPlat's North American sales and create additional profitability through enhanced business efficiencies and shared resources.
This strategic move allows NextPlat to leverage Outfitter's existing infrastructure, including office and warehouse space, to support its domestic operations and distribution. Additionally, the integration of Outfitter's operations onto NextPlat's global e-commerce platform is anticipated to broaden its product offerings and aid in its expansion into international markets.
Charles M. Fernandez, Executive Chairman and CEO of NextPlat, expressed that Outfitter is an ideal fit for the company's technology e-commerce portfolio, providing immediate synergies and scaling up North American operations. He stated that this acquisition aligns with NextPlat's growth strategy, which includes expanding its business in the United States and other large markets globally.
David Phipps, President of NextPlat and CEO of Global Operations, remarked on the increasing consumer and commercial demand for connectivity products and services, emphasizing the potential for new technology e-commerce growth for NextPlat.
NextPlat operates a communications division offering various products and services, including voice, data, tracking, and IoT, and manages pharmacy and healthcare data services in the U.S. through its subsidiary, Progressive Care Inc. (OTCQB: RXMD).
The information for this article is based on a press release statement.
InvestingPro Insights
As NextPlat Corp (NASDAQ: NXPL) gears up to complete its acquisition of Outfitter Satellite Inc., investors and industry observers are closely examining the company's financial health and market performance. According to InvestingPro real-time metrics, NextPlat holds a market capitalization of $28.09 million. Despite its impressive revenue growth of 113.0% over the last twelve months as of Q3 2023, the company's profitability remains a challenge, with a negative P/E ratio of -7.48 and an adjusted P/E ratio of -4.02 for the same period.
Moreover, an InvestingPro Tip highlights that while NextPlat has managed a significant return over the last week with a price total return of 10.29%, the company's long-term performance has been less encouraging, with the price having performed poorly over the last decade. This could be a point of concern for long-term investors considering the stock's historical trend.
Another InvestingPro Tip notes that NextPlat does not pay a dividend to shareholders, which may influence the investment decisions of those seeking regular income from their equity investments.
For those interested in a deeper analysis, InvestingPro offers additional tips on NextPlat, which can be accessed through their platform. To enhance your investment research, use the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are currently 7 additional InvestingPro Tips available for NextPlat that could provide further insights into their financial position and market potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.