xG Technology to acquire Integrated Microwave Technologies
The $3MM purchase price reflects a combination of cash and long-term debt. The purchase is expected to close by no later than February 15, 2016.
IMT, which recorded annual revenues of $7.2MM in 2015, is a leader in high-performance video transmission technology, and has 20 years of experience in the design and manufacture of state-of-the-art wireless digital and analog video products. Its primary market focus is in the following sectors: broadcast (with clients including, but not limited to, the major broadcast television networks, and NFL, MLB and NHL professional sports teams); and MAG (military, aerospace and government), with clients ranging from local and national law enforcement agencies, Department of Defense agencies and surveillance firms.
Operating and technological synergies expected to result from the acquisition.
IMT has a complimentary market focus with a core customer roster that includes federal, state, local government, public safety, and Department of Defense agencies. These markets have unmet broadband communications needs that can be solved by the xMax secure private mobile broadband system.
IMT also has a strong presence in event management communications, which is an area of focus for xG. To that end, xG announced in September of last year the availability of the rapidly-deployable xMax Transportable Broadband system, which enables instant, uninterrupted communications during events, disasters and other quickly changing operating environments.
Closely-aligned product development roadmaps, with the potential for joint development of a point-to-multipoint product for video that would allow multiple cameras to share and receive information.
xG gains the benefit of leveraging ISO 9001:2008 QMS approach from IMT into its own quality processes.
IMT has proven miniaturization technology, and is a world leader in the design of their transmitters. Their key enabling technology in this area is ultra-compact COFDM (Coded Orthogonal Frequency Division Multiplexing), which will benefit greatly from xG’s patented interference mitigation technology, which has been proven in demanding Department of Defense test environments.
Once the acquisition is finalized, the utilization of assets are expected to realize cost savings of up to $2MM annually, due to efficiencies realizable from shared facilities, tools, processes, and especially product manufacturing, which IMT does in-house and xG currently outsources. The operations of both companies will continue to be housed in their respective locations.
www.xgtechnology.com
www.imt-solutions.com
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