BSquare Corporation announced March 11 the acquisition of privately-held InfoGation Corporation in a cash and stock transaction valued at approximately $8 million.

InfoGation is a company in the development of on-board and handheld vehicle navigation systems, one of the larges smart device market segments. With this acquisition, BSquare will increase its presence in the telematics market with a new line of product and service offerings, according to the company.

InfoGation will become a wholly owned subsidiary of BSquare and its 26 employees will continue to operate out of its San Diego, California location.

Since 1996, InfoGation has been dedicated to developing telematics solutions for the global automotive industry. Along with Microsoft and Clarion Co. Ltd., InfoGation created the first in-car computing device, AutoPC, powered by the Microsoft Windows CE for Automotive operating system.

"InfoGation's reputation as a premier automotive navigation innovator with an outstanding commitment to customer service complements BSquare's expertise in embedded systems and dedication to delivering superior solutions to the smart device market," said Clarion's Dr. Yasuhiko Nakagawa, director and GM of Product Strategy. "Clarion will benefit from their collective technology and service offerings."

"One of the fastest growing segments of the smart device market, telematics provide users access to emergency assistance, navigation, and communications tools while on-board their vehicle," said William Baxter, president and CEO of BSquare. "The quality of products, customers and employees acquired through the InfoGation transaction enhances our current offerings and allows us to deliver high quality navigation and computing products to the market. We are confident of our combined ability to provide increasingly integrated solutions, and we believe InfoGation products and services will be accretive to our revenue in early 2003."

According to BSquare, with the convergence of the Internet, wireless communications and information and commerce services, InfoGation's software and services connects cars to the Internet and enables car manufacturers and fleet operators to differentiate their products. Dr. Kent Pu, founder of InfoGation said, "Having InfoGation join the BSquare team will strengthen our position as a leading supplier of telematics solutions due, in part, to the advantages of BSquare's business infrastructure and complimentary BSquare technology. We believe this merger will help both groups achieve greater success and penetration in the smart device market."

The transaction will be accounted for as a purchase of stock. Consideration includes the exchange of approximately 1.3 million shares of BSquare Common Stock and approximately $3.65 million in cash for all of the issued and outstanding common and preferred shares of InfoGation. In addition, each option to purchase shares of InfoGation Common Stock outstanding at the effective time of the Merger will be assumed by BSquare and will be treated as an option to purchase that number of shares of BSquare Common Stock as calculated by the exchange ratio.

The definitive agreement has been signed, and closing of the transaction will occur upon completion of standard closing conditions. InfoGation's revenue and net loss were approximately $3.2 million and $(1.9) million in fiscal year 2001, respectively; and had net equity of approximately $600,000 at December 31, 2001.

About InfoGation

InfoGation Corp. is a developer of navigation and communication applications, integration services and real-time content delivery. According to the company, its products and services enhance safety, security, productivity and the overall driving experience. InfoGation enables car manufacturers, Tier-1 auto suppliers, fleet operators and wireless carriers to provide value-added services, enabling product differentiation, increased customer retention and incremental revenues.

The company's customers and partners include some of the world's leading car manufacturers, Tier-1 automotive suppliers and wireless portal companies such as Microsoft, Clarion, Visteon, Peugeot Citroen and Navigation Technologies. Founded in 1996, InfoGation is headquartered in San Diego, California. More information on InfoGation Corporation can be found at

About BSquare

BSquare Corporation provides solutions for smart devices in consumer, enterprise, industrial, and automotive markets. As a Windows Embedded Partner Gold-level Member for Microsoft, BSquare empowers the creation, connection, and management of Windows Powered smart devices through software, hardware, and service solutions. BSquare provides engineering services including device development, quality assurance, and system integration as well as services for managing client devices deployed into the market. For more information, visit BSquare at or call 888/820-4500.