Salt Lake-based Category 5 Technologies Inc. said Thursday that it has signed a letter of intent to acquire Utah-based CaptureQuest for $6 million in common stock.
Category 5 said the acquisition is consistent with its strategy of acquiring software companies that are profitable, have growing revenue streams and are complementary to Category 5's existing suite of software offerings.
Following the completion of the CaptureQuest transaction, which is expected to close by next month, Category 5 will have annualized revenues in excess of $30 million, positive and growing earnings and cash flow, and approximately 120 employees worldwide.
Category 5 provides marketing tools and technologies for small to medium-size businesses.
The company said sales from CaptureQuest's standalone product likely will generate about $4 million in sales and nearly $1 million in net income this year.