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[December 21, 2012]
CalAmp to acquire operations of Wireless Matrix
Dec 21, 2012 (TELECOMWORLDWIRE via COMTEX) -- CalAmp Corp. (NASDAQ: CAMP) said it has signed a definitive agreement to acquire the operations of Wireless Matrix Corp. (TSX: WRX), a Herndon-Virginia-based wireless data communications solutions company.
CalAmp expects to leverage Wireless Matrix's mobile workforce management and asset tracking applications for customers in its core verticals, while also expanding its turnkey offerings to address new markets. The transaction is expected to be accretive to CalAmp's non-GAAP earnings per share in fiscal 2014 and beyond, and to significantly improve CalAmp's competitive positioning and growth prospects.
The definitive agreement provides that CalAmp will acquire the U.S subsidiary of Wireless Matrix, which conducts all of their operations, for a cash payment of $53 million. As part of the assets to be acquired, CalAmp expects to receive cash in the estimated amount of $5 million. CalAmp plans to fund the purchase from the proceeds of an equity offering of approximately $35 million, bank debt and on-hand cash. The transaction is subject to customary closing conditions and is expected to be completed in March 2013.
CalAmp develops and markets wireless communications solutions that deliver data, voice and video for critical networked communications and other applications. The company's two business segments are Wireless DataCom, which serves enterprise, utility and government customers, and Satellite, which focuses on the North American Direct Broadcast Satellite market. For more information, visit www.calamp.com.
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