DALLAS, April 14, 2021 /PRNewswire/ -- COMSovereign
Holding Corp. (NASDAQ: COMS) ("COMSovereign" or "Company"), a
U.S.-based developer of 4G LTE Advanced and 5G Communication
Systems and Solutions, today announced that it is acquiring
Innovation Digital, LLC ("Innovation Digital"), a premier developer
of "beyond state-of-the-art" mixed analog/digital signal processing
solutions, intellectual property (IP) licensing, design and
consulting services.
Innovation Digital's signal processing techniques and IP have
significantly enhanced the bandwidth and accuracy of RF transceiver
systems and have provided enabling technologies in the fields of
communications and RADAR systems, signals intelligence (SIGINT) and
electronic warfare (EW), test and measurement systems, and
semiconductor devices.
Terms of the transaction include total consideration of
$8 million consisting of $1.6 million in cash and convertible debt and
$6.4 million worth of shares of
restricted common stock. The transaction is expected to close
within approximately 10 days subject to traditional closing
conditions. Following the close of the transaction, Dr.
Scott Velasquez will assume the role
of Chief Research Officer for COMSovereign including the oversight
and management of the Lextrum, VEO and Innovation Digital business
units.
Transaction Highlights
- The firm provides intellectual property licensing, design and
consulting services supporting the implementation of advanced
digital system technologies and services for extremely
high-performance communications, RADAR, and integrated component
applications. Clients include multiple U.S. defense contractors
such as General Dynamics, Raytheon, L3Harris and various U.S
Department of Defense agencies including The Naval Surface Warfare
Center, the Missile Defense Agency, the Air Force Research
Laboratory and DARPA.
- The accretive acquisition of Innovative Digital is expected to
contribute approximately $3 million
in net revenue from licensing this year from committed
customers.
- Innovation Digital holds 21 issued and several pending United
States Patents. As part of COMSovereign, its valuable IP and
expertise will further advance the performance capabilities of the
Company's entire range of next-gen radio products that will set a
new standard for throughput and efficiency.
- Innovation Digital was founded by Dr. Scott Velazquez, who holds four degrees from
MIT including a Ph.D. in Electrical
Engineering. Scott is considered the pioneer, and still one of the
foremost experts in mixed analog/digital signal processing
technology.
"Innovation Digital's engineers are among the top experts in
signal efficiency and waveform engineering and aligns with our
strategy of building and maintaining our technological leadership
and capabilities through either organic means or via acquisition.
Their addition to our team will accelerate the integration of both
Lextrum's In-Band-Full-Duplex and the licensed Transpositional
Modulation technologies into our next generation 'Polaris' 5G radio
products, resulting in dramatic improvements in product performance
and expanding our unique features and capabilities," said Dr.
Dustin McIntire, CTO of
COMSovereign.
For more information about COMSovereign, please visit
www.COMSovereign.com and connect with us on Facebook and
Twitter.
About COMSovereign Holding Corp.
COMSovereign Holding
Corp. (Nasdaq: COMS) has assembled a portfolio of communications
technology companies that enhance connectivity across the entire
data transmission spectrum. Through strategic acquisitions and
organic research and development efforts, COMSovereign has become a
U.S.-based communications provider able to provide 4G LTE Advanced
and 5G-NR telecom solutions to network operators and enterprises.
For more information about COMSovereign, please visit
www.COMSovereign.com.
Forward-Looking Statements
Certain statements in this
press release that are not historical facts are forward-looking
statements that reflect management's current expectations,
assumptions, and estimates of future performance and economic
conditions, and involve risks and uncertainties that could cause
actual results to differ materially from those anticipated by the
statements made herein. Forward-looking statements are generally
identifiable by the use of forward-looking terminology such as
"believe," "expects," "may," "looks to," "will," "should," "plan,"
"intend," "on condition," "target," "see," "potential,"
"estimates," "preliminary," or "anticipates" or the negative
thereof or comparable terminology, or by discussion of strategy or
goals or other future events, circumstances, or effects. Moreover,
forward-looking statements in this release include, but are not
limited to, the impact of the current COVID-19 pandemic, which may
limit access to the Company's facilities, customers, management,
support staff, and professional advisors, and to develop and
deliver advanced voice and data communications systems, demand for
the Company's products and services, economic conditions in the
U.S. and worldwide, and the Company's ability to recruit and retain
management, technical, and sales personnel. Further information
relating to factors that may impact the Company's results and
forward-looking statements are disclosed in the Company's filings
with the SEC. The forward-looking statements contained in this
press release are made as of the date of this press release, and
the Company disclaims any intention or obligation, other than
imposed by law, to update or revise any forward-looking statements,
whether as a result of new information, future events, or
otherwise.
Contacts:
Steve Gersten, Director of
Investor Relations
COMSovereign Holding Corp.
813-334-9745
investors@comsovereign.com
External Investor Relations:
Chris Tyson, Executive Vice
President
MZ Group - MZ North America
949-491-8235
COMS@mzgroup.us
www.mzgroup.us
and
Media Relations for COMSovereign Holding Corp.:
Michael Glickman
MWGCO, Inc.
917-397-2272
mike@mwgco.net
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SOURCE COMSovereign Holding Corp.