Quest Solution to Buy AI Leader HTS Image Processing
Quest intends to integrate AI into its supply chain solutions; company positioned to penetrate new large verticals including security and access control.
EUGENE, Ore. — Global solution provider Quest Solution (OTCQB: QUES) said it has acquired artificial intelligence image specialist HTS Image Processing for $6.3 million with plans to integrate AI into its supply chain solutions.
HTS, with U.S. headquarters in Salt Lake City, is a leading provider of computer vision image processing-based solutions for security, safe cities, traffic management, parking management, law enforcement, video surveillance and access control.
Quest Solution, based here, announced HTS proprietary AI technology will create automated logistic monitoring and optimization for its Fortune 500 customers around supply chain management.
“This acquisition provides higher margin growth and transforms Quest’s business model by positioning the company as a technological leader with state-of-the-art solutions in two multi-billion dollar, high-growth markets of [Smart City and Supply Chain Management],” states Quest CEO Shai Lustgarten. “Adding new technology with company-owned IP was a key goal that we articulated when new management embarked on the turnaround of Quest.”
Quest is a specialty systems integrator who designs, deploys and manages enterprise mobility solutions, including mobile cloud analytics, automatic identification and data capture, and mobility software. HTS, which generated $29 million in revenue in the first half of 2018, provides AI-based solutions that leverage advanced algorithms based on cognitive science and AI pattern recognition that is used for sensitive projects such as for Homeland Security anti-terrorism and airport security.
“HTS’ AI technology will take our supply chain solutions to the next level, addressing essential needs in law enforcement, Homeland Security, logistic yard management, automation of parking, traffic management and security,” says Lustgarten
For fiscal year 2018, HTS is expected to generate approximately $10 million in revenue with operational profitability and average gross margin of approximately 38%, according to the announcement. Quest is purchasing HTS for $6.3 million, mainly paid in restricted shares at the average closing price for the trailing 20 trading days.
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