WESTCHESTER, Ill.-Consolidation among communications vendors continued as Andrew Corp. announced plans to spend $50.5 million in cash to buy the wireless division of EMS Technologies Inc.
Georgia-based EMS Wireless racked up revenues of $28.5 million during the first half of this year from sales of its base-station antennas and in-building repeaters for cellular networks. Andrew said it expects to achieve annual synergies and lowered corporate spending of between $5 million and $10 million beginning next year.
“EMS Wireless and its employees have a successful track record in innovation and customer responsiveness, and their addition to Andrew will deliver compelling strategic and financial benefits,” said John DeSana, president of antenna and cable products at Andrew. “EMS Wireless will strengthen our relationships with key customers and extend our leadership position in wireless subsystems.”
EMS Technologies chief Paul Domorski said the 200 employees of EMS Wireless “will have a better future as part of a larger organization, such as Andrew, that is less affected by swings in sales of particular products and has a wider array of products to offer to wireless carriers.”
Andrew said it expects the deal to close in the next few months. Other infrastructure vendor consolidation agreements set to close by year’s end include Alcatel Inc.’s merger with Lucent Technologies Inc. and Nokia Corp.’s merger with Siemens S.A.’s network division.
