In a move to further its presence in the 220 MHz industry as well as expand into other burgeoning wireless markets, Intek Diversified Corp. plans to acquire NovAtel Communications Ltd.’s wireless products division, research and development capability and a manufacturing plant for about $30 million.
Calgary, Alberta, Canada-based NovAtel develops and manufactures wireless products for the cellular, mobile data and telecommunication markets. The assets Intek will acquire include the Wireless Access Products business unit, the Personal Communication Products business unit and a 120,000-square-foot manufacturing facility in Calgary. The transaction is expected to be completed later this year.
“This acquisition provides Intek with a state-of-the-art RF manufacturing facility to produce the Roamer One subscriber 220 MHz radios,” said John Simmonds, Intek chief executive officer.
Intek acquired Roamer One in September of 1994. Roamer One is constructing and managing a nationwide specialized mobile radio network in the 220 MHz spectrum. It manages licenses for 2,250 channels throughout the United States.
“The technology at NovAtel,” said Simmonds, “also will give Intek the opportunity to enter the growing export market for wireless telecommunication systems beyond two-way radios and to be a supplier of infrastructure and subscriber equipment to the PCS (personal communications services) market in the United States.”
Intek recently signed definitive agreements to buy three subsidiaries from Simmonds Communications Ltd. of Toronto-Midland International Corp., Midland International Ltd. and SCL Systems and Infrastructure. Intek expects the transactions to be completed during this year’s fourth quarter.
Midland International Corp., based in Kansas City, Mo., is considered the fourth largest U.S. supplier of land mobile radio products. Midland’s role in Roamer will be to distribute all privately labeled subscriber equipment intended for use on the Roamer One network.
SCL Systems of Pickering, Ontario, is a systems supplier and integrator, and has supplied and installed the Roamer One network.
Intek will acquire the three entities in exchange for issuing 15 million shares of Intek common stock to Simmonds; the 15 million will represent about 60 percent of all shares outstanding.
Simmonds is a diversified electronics company that manufactures, distributes and provides system integration for the global wireless communication market. The SCL Systems purchase has led to further discussions between Intek and Securicor Communications Ltd. of Sutton, Surrey, England. Securicor recently subscribed for 937,042 common shares of Intek stock, part of a previously announced $4 million equipment supply and financing agreement.
Now Securicor and Intek are considering further areas of joint opportunity in the telecom and wireless markets. Cooperation between the companies could involve joint ventures, investments, technology sharing and teaming for major projects, according to Simmonds. Securicor Communications is a wholly owned subsidiary of the Securicor Group plc, a company headquartered in the United Kingdom that specializes in parcel handling, security and telecommunications.
