ATLANTA and STOCKHOLM, Sweden, Feb. 11, 2008 (PRIME NEWSWIRE) -- EMS Technologies, Inc. (Nasdaq:ELMG), announced today the acquisition of Akerstroms Trux AB, of Stockholm, Sweden, from BrainHeart Capital, for approximately (US) $15.5 million. EMS expects the acquisition to accelerate the market share growth of EMS's LXE business for vehicle-mount computers (VMC's) used in warehousing and distribution applications globally, by leveraging the strengths of two leaders in key industrial mobile computer markets.
Akerstroms Trux, the VMC market leader in the Nordic region, brings to LXE a new, market-ready Windows XP-based product line targeted at customers running advanced wireless applications in demanding warehousing and production environments.
"This is an important acquisition for EMS for two key reasons. First, it gives our LXE business a boost in the high-growth European market at a time when the EMEA and Asia markets are outpacing growth in the Americas. Second, it immediately provides LXE with a best-in-class product offering, which serves our combined customer base," says EMS Technologies' President and CEO Paul Domorski.
"We are very pleased with the transaction and believe that EMS/LXE is a perfect home for Akerstroms Trux. The Trux business has enjoyed positive development in later years and will continue to grow being part of the world market leader in vehicle-mount computers," says Kent Sander, Senior Partner at BrainHeart Capital.
Jim Childress, president of LXE, adds, "The addition of the Trux product line instantly strengthens our vehicle-mounted thick client offering -- a growing segment of the market driven by customers deploying advanced applications and standardizing their IT infrastructure." He adds, "In the next few months, we will focus on fully integrating the Trux capabilities into our organization, as we look to maximize Akerstroms Trux's significant sales channels in the Nordic region, Europe and the United States."
Akerstroms Trux President Erik Lindquist has been appointed country manager for LXE Scandinavia, with responsibility for the Nordic countries. Other members of the Akerstroms Trux management team will assume key sales, operations, and development roles in the combined company. According to Lindquist, customers will see immediate benefits.
"We recognize LXE is a market leader. We can now leverage LXE's global sales and support channels to service our customers. Together, we can take a broader range of products to a larger set of customers. We see only benefits from this acquisition," says Lindquist.
According to EMS, the acquisition will be accretive in 2009 and 2010, and will not materially affect 2008 guidance.
Venture Data Corp. (VDC) reports that LXE is the worldwide vehicle-mount computer (VMC) market leader in distribution environments, with a 23-percent market share. LXE is also a recognized leader in VMC solutions for container ports worldwide. The largest of EMS Technologies' businesses, LXE has exhibited consistent double-digit organic growth over the past four years. VDC estimates that the worldwide market for rugged vehicle-mount computers was $600 million in 2006.
About EMS Technologies, Inc.
EMS Technologies, Inc. (Nasdaq:ELMG) is a wireless and satellite communication solutions leader, serving aeronautical, defense, maritime, commercial space and supply chain markets. Through its LXE, EMS SATCOM, and Defense & Space Systems divisions, EMS keeps people, systems and data connected, wherever they are -- on the ground, in the warehouse, in the air, or in space. The company is headquartered in Atlanta, employs approximately 1,000 people worldwide and operates major manufacturing facilities in Atlanta and Ottawa, Canada.
About Akerstroms Trux AB
Akerstroms Trux AB is an international company with focus on development, sales and marketing of robust & reliable vehicle-mount computing solutions for use in demanding warehousing and production environments. Akerstroms Trux is the VMC market leader in the Nordic region, with rapid growth in Europe and the United States. Akerstroms Trux products are preferred among small companies as well as major global corporations, thanks to their high quality and outstanding support services. Sales are mainly achieved through a well-established, global network of system integrators.
About BrainHeart Capital
BrainHeart Capital is an industrial venture capital company focused on investing, building and selling companies in the area of wireless applications and technology. BrainHeart manages SEK 1.4 billion for investors such as The Sixth AP Fund, Skandia Life, The Fourth AP Fund, Confederation of Swedish Enterprise and IBM. Among companies developed by BrainHeart are Spring Mobil, Spinbox, Akerstroms Trux, Akerstroms RRC (acquired by Verdane), Mobeon (acquired by Ericsson). The company's operations are built around three people with extensive experience in the telecom and wireless IT fields: Ulf Jonstromer, Anders Bjorkman and Kent Sander. www.brainheart.com
For more information, visit EMS on the World Wide Web at www.ems-t.com.
To learn more about Akerstroms Trux, visit: http://www.akerstromstrux.com/.
Statements contained in this press release regarding the Company's expectations for its financial results for 2008, and concerning the potential for its LXE business and products, are forward-looking statements. Actual results could differ from those statements as a result of a wide variety of factors. Such factors include, but are not limited to:
* economic conditions in the U.S. and abroad and their effect on capital spending in the Company's principal markets; * customer response to new products and services, and general conditions in our target markets; * the ability to effectively integrate an acquired business and its technologies into our existing businesses and products, and * The risks that the acquired business and technologies do not perform as expected as part of LXE, or are subject to liabilities that were not disclosed or identified during due diligence reviews, and that as a result the acquisition is dilutive to earnings.
Further information concerning relevant factors and risks are identified under the caption "Risk Factors" in the Company's annual report on Form 10-K for the year ended December 31, 2006.