ATLANTA and TEWKESBURY, United Kingdom, Nov. 21, 2008 (GLOBE NEWSWIRE) -- EMS Technologies, Inc. (Nasdaq:ELMG), announced today that it has signed a definitive agreement to acquire Satamatics Global Ltd., a global provider of Inmarsat IsatM2M (machine-to-machine or "M2M") services, headquartered in Tewkesbury, UK.
The acquisition complements the Company's existing Iridium -- and Inmarsat-based tracking solutions. EMS expects the acquisition to be accretive and to add EBITDA of $3 million to $5 million in the first year post-acquisition.
"Acquiring Satamatics extends EMS's satellite capabilities into the growing M2M market using low-cost satellite data terminals, and further strengthens EMS as a market leader in satellite-based applications for tracking people and assets worldwide," says EMS Technologies' President and CEO Paul Domorski. "We anticipate significant synergies with EMS's current satellite-based helicopter and military-vehicle tracking businesses. In particular, we expect promising growth for security and logistics applications in the road transport market, particularly in South America, Africa and the Middle East."
Operating with Inmarsat's IsatM2M satellite service, Satamatics enables organizations to locate, track and communicate with mobile assets, safeguard fleets, cargo and personnel, and monitor fixed assets in the world's most hostile and remote areas. Founded in 2001, Satamatics has an extensive worldwide distribution network of value-added resellers, but also supplies direct to end users complete tracking and monitoring solutions (hardware, airtime and mapping) for land transport, oil and gas, and maritime industries. Since 2005, the company has had a consistent compounded annual growth rate of 29 percent.
Frost & Sullivan reports that the satellite M2M market is expected to grow by 21 percent annually, from $610 million in 2008 to $900 million in 2009.
Dino Koutrouki, CEO of Satamatics, will continue to lead Satamatics post-closing. According to Koutrouki, "As a growth business, Satamatics recognizes the value of aligning ourselves to a larger, well-established, and global satellite business focused on complementary markets. EMS brings significant capabilities in product and application development to our offerings."
EMS plans to retain Satamatics' staff and current operations in Tewkesbury, UK.
The parties anticipate the transaction to close in the first half of 2009, subject to customary closing conditions, including the receipt of necessary regulatory approval.
EMS was represented in the transaction by King & Spalding LLP, and the majority shareholders of Satamatics were represented by Steptoe & Johnson LLP.
About Satamatics
Satamatics is a global telematics company, which provides customised, end-to-end tracking and monitoring solutions that will work anywhere in the world. Satamatics enables land transport, security, maritime and oil and gas organisations to locate, track and communicate with mobile assets, safeguard their fleets, cargo and personnel, and monitor their fixed and mobile assets in the most hostile or remote terrains in the world.
The privately owned company was founded in Gloucestershire, UK, in April 2001. Satamatics has been placed in The Sunday Times Microsoft Tech Track 100 for two years running. This annual league table ranks Britain's fastest-growing private technology companies. Satamatics' sales have grown between 2006 and 2008 by 67 percent. For more information about Satamatics, visit: www.satamatics.com.
About EMS Technologies, Inc.
EMS Technologies, Inc. (Nasdaq:ELMG) is a leading supplier of wireless connectivity solutions. With technology leadership positions in the aeronautical, defense and wireless logistics computing markets, EMS keeps people, systems and data connected, wherever they are -- on the ground, in the air, or in space. Headquartered in Atlanta, EMS employs 1,100 people worldwide in four business units: EMS SATCOM, LXE, EMS Defense & Space Systems and EMS Sky Connect. It has major manufacturing facilities in Atlanta, and Ottawa, Canada. For more information, visit EMS on the World Wide Web at www.ems-t.com.
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Statements contained in this press release regarding the Company's expectations for its financial results for future periods, and concerning the potential for the business and products of Satamatics and of EMS's SATCOM division, 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 an acquisition could be dilutive to earnings or that the acquired business and technologies do not perform as expected.
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 2007.