CalAmp to Acquire Dataradio, Inc.
May 09 2006 - 3:30PM
Business Wire
CalAmp Corp. (Nasdaq:CAMP): -- Expands CalAmp's presence in public
safety and Machine-to-Machine (M2M) markets -- Significantly
diversifies CalAmp customer base -- Expected to be accretive in
near term CalAmp Corp. (Nasdaq:CAMP), a leading provider of
wireless solutions, announced today that it has signed a definitive
agreement to acquire Dataradio, Inc., a privately held Canadian
company. This acquisition provides CalAmp with the opportunity to
expand its wireless data communications business for public safety
and M2M applications. It also furthers CalAmp's strategic goals of
diversifying its customer base and expanding its product offerings
into higher-margin growth markets. Excluding one-time non-cash
charges for the write-off of in-process R&D, the transaction is
expected to be immediately accretive to CalAmp's earnings per
share. Dataradio was founded in 1981 and is a leading supplier of
proprietary advanced wireless data systems, products, and solutions
for public safety, critical infrastructure and industrial control
applications. Dataradio has a diversified customer base with no
single customer accounting for more than 4% of total revenue.
Dataradio has approximately 175 employees in facilities located in
Montreal, Minnesota and Georgia. For the unaudited 12 month period
ended April 30, 2006, Dataradio had revenues of approximately U.S.
$32 million. During this same period, Dataradio generated gross
margins in excess of 50%. Commenting on the pending acquisition of
Dataradio, Fred Sturm, President and Chief Executive Officer of
CalAmp, said, "Dataradio brings us a critical mass of core
competencies and market presence around which we can further
develop and grow our wireless data communications business.
Dataradio's systems design and integration expertise, combined with
a broad base of industrial and municipal customers, greatly
enhances CalAmp's competitive position and long-term growth
potential. Once combined with CalAmp's existing businesses that
provide wireless products and solutions for M2M and public safety
applications, we expect our data communications business will have
an annual revenue run rate in excess of $60 million. The Dataradio
acquisition is a key step in achieving our strategic goals of
reducing CalAmp's current customer and market segment
concentration, improving margins and increasing our long-term
growth potential while maintaining solid operating cash flow
generation. We are excited about the opportunity to combine the
strengths of our two companies in addressing the needs of the
growing M2M and public safety marketplaces." Commenting on the
acquisition, Robert Rouleau, Chief Executive Officer of Dataradio,
said, "We are very pleased to be joining forces with CalAmp, a
company with a long, successful history of delivering
cost-effective high quality solutions to its wireless customers.
With our combined resources, we are well positioned for continued
innovation and growth. We look forward to delivering even greater
value to our customers in the future as we create a new standard
for mission-critical wireless data solutions." The terms of the
definitive agreement provide that CalAmp will acquire Dataradio for
a cash payment of Canadian $60.1 million (approximately U.S. $54.6
million at the current Canadian Dollar to U.S. Dollar exchange rate
of 1.10). CalAmp plans to finance the transaction using a
combination of cash on hand and bank debt. The transaction is
subject to customary closing conditions and is expected to be
completed in the next several weeks. About Dataradio For 25 years,
Dataradio has been a recognized and innovative supplier of advanced
wireless data products and systems for mission-critical
applications. Public safety organizations, utilities, local
government, water management, and other critical infrastructure
operations depend on Dataradio to ensure that vital wireless data
reaches the people who need it, when they need it most. From mobile
data systems and radio modems, to analog radios and telemetry
devices, Dataradio products are found at the heart of private
wireless networks around the world. For additional information,
please visit the Dataradio's website at www.dataradio.com. About
CalAmp Corp. CalAmp is a leading provider of wireless equipment,
engineering services and software that enable anytime/anywhere
access to critical information, data and entertainment content.
With comprehensive capabilities ranging from product design and
development through volume production, CalAmp delivers
cost-effective high quality solutions to a broad array of customers
and end markets. CalAmp is the leading supplier of Direct Broadcast
Satellite (DBS) outdoor customer premise equipment to the U.S.
satellite television market. The Company also provides wireless
connectivity solutions for the telemetry and asset tracking
markets, public safety communications, the healthcare industry and
digital multimedia delivery applications. For additional
information, please visit the Company's website at www.calamp.com.
Forward-Looking Statement Statements in this press release that are
not historical in nature are forward-looking statements, which
involve known and unknown risks and uncertainties. Words such as
"may", "will", "expect", "intend", "plan", "believe", "seek",
"could", "estimate", "judgment", "targeting", "should", and
variations of these words and similar expressions, are intended to
identify forward-looking statements. Actual results could differ
materially from those implied by such forward-looking statements
due to a variety of factors, including general and industry
economic conditions, competition, development factors, operating
costs, the Company's ability to eliminate operating losses in its
Solutions Division and make this business segment profitable, the
Company's ability to efficiently and cost-effectively integrate its
acquired businesses, and other risks and uncertainties that are
detailed from time to time in the Company's filings with the
Securities and Exchange Commission. Although the Company believes
the expectations reflected in such forward-looking statements are
based upon reasonable assumptions, it can give no assurance that
its expectations will be attained. The Company undertakes no
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
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