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.