LOS ANGELES-Intek Diversified Corp. of Los Angeles, Simmonds Capital Ltd. of Toronto and Surrey, England-based Securicor Group plc announced they have signed a letter of intent to combine parts of their wireless communications businesses and related technology.
The agreement will combine Intek’s Roamer One airtime services business with the U.S. Land Mobile Radio business of Midland International Corp., a wholly owned subsidiary of SCL, and the narrowband wireless technology and manufacturing operations of Securicor Radiocoms Ltd., a wholly owned subsidiary of Securicor.
As a result, Intek will become an integrated wireless company providing airtime services, product distribution and manufacturing for the wireless land mobile radio market, the companies said. The agreement calls for Intek to purchase a license to use Midland’s trademark in the United States for the land mobile radio market in exchange for about 2.5 million common shares of Intek stock. Intek also will purchase in cash certain assets from Midland that are used in the business. SCL will retain the international operation of Midland and the SCL Systems business, which operates as a systems integrator for wide-area communications networks.
