Over the last several years Lenger Financial has been quietly accumulating a robust collection of assets and investments; today the diverse, Jacksonville-based holding company is in the midst of a period of rapid growth. Lenger Financial recently formed a single purpose LLC that invested $1.415 million in Duos Technologies, Inc., providing Duos Technologies with working capital to help facilitate its reverse triangular merger with Information Systems Associates (OTCPK: IOSA). That transaction was finalized on April 2.
Through its Venture Capital subsidiary, Lenger Financial created a single purpose LLC to enable the formerly privately-held Duos Technologies to become publicly listed through a convertible debenture. In accordance with the terms of the investment, Lenger’s capital was converted into stock at a fixed rate. Lenger, thru Duos Ventures LLC, now owns 3.54% of stock in Duos Technologies.
Lenger Financial President and CEO Keith Lenger said, “We could not be more excited about uncovering this diamond in the rough. Duos Technologies, now Information System Associates post merger, is an example of Jacksonville’s varied and dynamic small business landscape. We are now proud to be a part of this company’s growth story.”
A reverse triangular merger differs from a traditional merger wherein a purchasing company simply buys the target company. Typically in a reverse triangular merger the purchasing company will create a subsidiary, which then purchases and mergers with the target company, which subsequently becomes its subsidiary. As a result of this transaction, Duos Technologies is now a wholly-owned subsidiary of Information Systems Associates.
Gianni Arcaini, CEO of Duos Technologies, said, “Lenger Financial provided great financial management skills in putting together the fund that invested in Duos Technologies. It’s a professional outfit and very solid.”
Both Duos Technologies and Information System Associates are engaged in the growing software and information technology services industry, which SelectUSA reports reached $606 billion in 2011.
Duos Technologies, an advanced intelligent technologies company headquartered in Jacksonville, provides an array of sophisticated proprietary technology applications and turnkey engineered systems, the latter to its Fortune 500 client base. Information Systems Associates is an established professional services and consulting company engaged through partners to provide services for information technology projects.
Through this transaction, Information Systems Associates, formerly headquartered in Coral Springs, has moved its base of operations to Jacksonville. The merged entity will focus on the growth markets of intelligent technologies, IT and cloud services. Both companies will continue to operate under their existing brands.
As a testament of its rapid growth, since 2012 Lenger Financial has grown from a small shop of 2 employees to 10. In addition to providing venture capital, Lenger Financial provides investment advice through its Registered Investment advisory, personal CFO services via it’s Family Office, and Real Estate solutions through its Asset Management subsidiary.
Information Systems Associates (OTC: IOSA) or ("ISA") will be presenting at The Brewer Group "Innovations" conference in Miami Beach, Florida on February 9, 2015. The presentation will be in conjunction with Duos Technologies of Jacksonville, Florida. In December 2014, the Companies announced the signing of a Letter of Intent to merge and have been actively working towards signing the definitive Merger Agreement and closing subject to complying with all...