CHANTILLY, Va., Oct. 9 /PRNewswire/ -- FLO Corporation, a Registered Traveler (RT) program services provider, today announced the execution of an agreement under which FLO will acquire the "rtGO" RT business of Unisys Corporation (NYSE: UIS). The transaction will provide FLO with world-class technology to complement the extensive marketing and distribution power of the FLO Alliance -- a strategic partnership of industry leaders in technology, finance, security and infrastructure. Under terms of the agreement, FLO will purchase the rtGO technical solution and will make ongoing royalty payments to Unisys through 2015. The transaction also includes an information technology services relationship between the parties whereby Unisys will serve as a subcontractor to FLO.
FLO Chief Executive Officer Glenn Argenbright stated, "I think everyone in this industry recognizes the proven technical strength of the rtGO solution from Unisys. Adding that platform to our existing marketing relationships and distribution engine provides a vividly different alternative to the choices available today, while strengthening the competitive structure of the RT industry as a whole. What's more, we are excited to bring to market the next generation of the program -- RT 2.0."
FLO believes this acquisition represents another important milestone in its growing role as an influential participant in the RT industry. In recent months FLO has been very active in growing and financing its RT capabilities in order to be ready for the expected increase in market demand for RT solutions from major airports across the country.
In April 2007 , FLO acquired the RT assets of Saflink Corporation (SFLK.OB). Senior sales and marketing roles were filled by FLO, and FLO entered into a series of teaming agreements with Unisys in connection with FLO's proposals to various airports for the design and implementation of RT programs. Most recently, FLO moved its corporate headquarters to Chantilly, Va., and initiated the process of becoming a public reporting company by filing a registration statement with the Securities and Exchange Commission.
This October 5, 2007 asset purchase agreement with Unisys is subject to customary conditions to close, including the consent to assignment of certain agreements and the approval of the U.S. Department of Homeland Security to the transfer of the certification and designation of Unisys's RT technology under the SAFETY ACT. The parties expect to close the transaction during the fourth quarter of 2007.
Mr. Argenbright continued, "Over the last year, we've been working to create a new and powerful option in the emerging RT marketplace. As we look forward, we plan to expand from our current strategy of acquisition and financing into a mode more heavily focused on growth and public restructuring. We believe FLO will represent the only publicly-held 'pure play' for investors interested in this new and innovative RT industry after FLO becomes a public reporting company."
In anticipation of this agreement with Unisys, FLO previously shifted its business focus to the marketing and corporate outreach necessary to drive RT adoption. As a result, the team will be commencing enrollment activities at major corporate headquarters in the coming weeks. FLO has signed numerous agreements with Fortune 1000 corporations in major U.S. markets. The agreement with Unisys allows FLO to leverage the rtGO platform, which has obtained all industry certifications necessary to operate in this emerging market, including Safety Act Certification granted by the Department of Homeland Security. This transaction demonstrates FLO's commitment and belief in the RT program and the security mission the TSA has intended for it.
Luke Thomas , FLO Executive Vice President stated, "Our multi-tier benefits approach responds to the TSA's challenge to provide a program with broad market appeal. We look forward to meeting the challenge Administrator Kip Hawley recently laid out for the RT industry in his call for greater creativity and innovation. We applaud his vision and look forward to our continued work with him and the TSA RT Program Management office."
Jean Covelli , Travel Administrator for Buffalo, New York-based Rich Products Corporation, added, "RT is one of the few opportunities to move passengers expeditiously into the secure sides of airports supporting TSA safety and security missions while helping business travelers recapture the productivity that has been lost in the post 9-11 era. We need a financially strong and innovative RT industry to achieve a critical mass of RT members and success at the national level. The FLO-Unisys transaction and the next-generation RT 2.0 solution should help ensure the program's success."
About Registered Traveler
FLO Corporation provides a comprehensive solution for the Registered Traveler program, which is administered by the U.S. Transportation Security Administration. The Registered Traveler program is designed to identify air passengers who pose a minimal security risk and then to provide those passengers with access to faster and simpler processing at airport security checkpoints. FLO Corporation has formed the "FLO Alliance" -- strategic relationships with several companies with extensive expertise in credentialing, security, access control, travel services, political lobbying, and corporate and consumer marketing -- designed to develop, market, sell and deploy an end-to-end solution and to provide next-generation RT 2.0 membership benefits to qualified individuals for expedited security screening in designated lanes at participating airports in addition to receiving promotional offers and discounts offered by retail partners. The FLO Alliance partnership consists of FLO Corporation, Microsoft, JPMorgan Chase, Johnson Controls, Inc., Smiths Detection Inc., The Paradies Shops, International RAM, and ID Technology Partners. For more information about the FLO program and Alliance visit http://www.fastlaneoption.com.
NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and involve risks and uncertainties. Forward-looking statements include statements regarding anticipated growth and business prospects for FLO Corporation's Registered Traveler program and solution. Actual results may differ materially from those expressed or implied in such forward-looking statements due to various factors, including: FLO Corporation's success in designing and offering a comprehensive Registered Traveler solution, its ability to obtain the necessary financing for its operations, and its ability to close the rtGO acquisition and integrate the rtGO Registered Traveler solution with its solution. Investors should consult FLO Corporation's filings with the Securities and Exchange Commission, http://www.sec.gov, including the risk factors sections of its registration statement on Form 10SB for further information regarding these and other risks of FLO Corporation's business.
NOTE REGARDING TRADEMARKS
"Saflink" is a registered trademark and "FLO" is a trademark of FLO Corporation. The names of actual companies mentioned herein may be the trademarks of their respective owners.
SOURCE FLO Corporation