Intelligent Product Solutions, a Hauppauge firm that designs internet-connected devices, was acquired this week by a public company in Florida.
Forward Industries, of West Palm Beach, purchased the Long Island company on Thursday in a cash, stock and debt deal that was worth up to $7 million, based on Forward’s closing stock price on Thursday.
Forward’s stock closed Friday at $2.95, up $1.71. Friday’s rally increased the potential value of the deal to almost $7.8 million, including future payouts. The value includes assumption of debt.
The Long Island company’s president, Mitchell Maiman, and its chief operating officer, Paul Severino, signed three-year employment agreements with Forward, securities filings show.
The “great synergies” between the two companies will help Intelligent Product Solutions grow, Maiman said.
Until now, the Long Island company has had limited sales staff, and it has not handled manufacturing, he said. By contrast, Forward, which was founded in 1962 and makes protective carrying cases for medical, electronic and other devices, has a robust sales staff and relationships with manufacturers, Maiman said.
Intelligent Product Solutions, which was founded in 2008, has more than 50 employees on Long Island, Maiman said.
“We have high hopes that it will help us to grow our workforce,” Maiman said of the deal. “In a business like ours, growing our business doesn’t mean producing more widgets . . . it means creating more product designs, and if we’re going to do that, we’re going to need more people. For Long Island, I think this bodes well.”
The local company’s clients include Google, Physio Control, PepsiCo, Motorola, ABInBev, Zebra and Charity Water.
A pill bottle it designed for Manhattan-based AdhereTech monitors whether patients are taking their medications and can send alerts to medical providers or family members.