Press Release Details

View all Press Releases

CalAmp Completes Acquisition of Dataradio, Inc.; Company Schedules Conference Call for Thursday, June 1, 2006 to Discuss Details of the Completed Transaction

05/30/06

OXNARD, Calif.--(BUSINESS WIRE)--May 30, 2006--CalAmp Corp. (Nasdaq: CAMP), a leading provider of wireless communication solutions, announced today that it has completed the acquisition of Dataradio, Inc., a privately held Canadian company and leading supplier of proprietary advanced wireless data systems, products and solutions for public safety, critical infrastructure and industrial control applications. This acquisition allows CalAmp to expand its wireless data communications business while furthering CalAmp's strategic goals of diversifying its customer base and expanding its product offerings into higher-margin growth markets. For the unaudited 12-month period ended April 30, 2006, Dataradio had revenues of approximately U.S. $32 million and generated gross margins in excess of 50%.

Under terms of the agreement that was announced on May 9, 2006, CalAmp acquired Dataradio for a cash payment of Canadian $60.1 million, or approximately U.S. $54 million at the effective Canadian Dollar to U.S. Dollar exchange rate. CalAmp financed the transaction using cash on hand of approximately $23 million and new bank debt of $38 million, of which $7 million was used to pay off CalAmp's existing bank loans.

Fred Sturm, President and Chief Executive Officer of CalAmp, said, "The combination of Dataradio and CalAmp's existing Machine-to-Machine (M2M) and public safety businesses gives CalAmp a critical mass of product development resources and market presence with a diverse customer base. In addition, we expect Dataradio's systems level expertise will enhance CalAmp's core capabilities in wireless communications technologies. The acquisition is a significant step towards our previously stated strategy of addressing CalAmp's current industry and customer concentration."

Mr. Sturm continued, "The addition of Dataradio to CalAmp's existing wireless products for M2M and public safety applications, supplemented by the acquisition of a product line from TechnoCom that we announced last week, will result in a business with an annual revenue run rate of over $60 million. At the same time, the acquisition of Dataradio is expected to increase CalAmp's overall gross margins and long-term growth potential."

After excluding acquisition-related expenses, the transaction is expected to be immediately accretive.

Robert Rouleau, Chief Executive Officer of Dataradio, will continue in his role and manage the day-to-day operations of the Dataradio business reporting directly to Mr. Sturm. The rest of Dataradio's management team is also expected to remain with the Company. Dataradio brings approximately 175 employees to CalAmp at facilities located in Montreal, Minnesota and Georgia.

Conference Call and Webcast

A conference call and simultaneous webcast to discuss the completion of the Dataradio acquisition will be held on Thursday, June 1, 2006 at 1:30 p.m. Eastern / 10:30 a.m. Pacific. The live webcast of the call is available on CalAmp's web site at www.calamp.com. Participants are encouraged to visit the web site at least 15 minutes prior to the start of the call to register, download and install any necessary audio software.

CalAmp's President and CEO Fred Sturm, CFO Rick Vitelle and Dataradio CEO Robert Rouleau will host the conference call. After the live webcast, a replay will remain available until the next quarterly conference call in the Investor Relations section of CalAmp's web site.

About CalAmp Corp.

CalAmp is a leading provider of wireless equipment, engineering services and software that enable anytime/anywhere access to critical information, data and entertainment content. With comprehensive capabilities ranging from product design and development through volume production, CalAmp delivers cost-effective high quality solutions to a broad array of customers and end markets. CalAmp is the leading supplier of Direct Broadcast Satellite (DBS) outdoor customer premise equipment to the U.S. satellite television market. The Company also provides wireless connectivity solutions for the telemetry and asset tracking markets, public safety communications, the healthcare industry and digital multimedia delivery applications. For additional information, please visit the Company's website at www.calamp.com.

About Dataradio, Inc.

For 25 years, Dataradio has been a recognized and innovative supplier of advanced wireless data products and systems for mission-critical applications. Public safety organizations, utilities, local government, water management, and other critical infrastructure operations depend on Dataradio to ensure that vital wireless data reaches the people who need it, when they need it most. From mobile data systems and radio modems, to analog radios and telemetry devices, Dataradio products are found at the heart of private wireless networks around the world. For additional information, please visit Dataradio's website at www.dataradio.com.

Forward-Looking Statement

Statements in this press release that are not historical in nature are forward-looking statements, which involve known and unknown risks and uncertainties. Words such as "may," "will," "expect," "intend," "plan," "believe," "seek," "could," "estimate," "judgment," "targeting," "should," and variations of these words and similar expressions, are intended to identify forward-looking statements. Actual results could differ materially from those implied by such forward-looking statements due to a variety of factors, including general and industry economic conditions, competition, development factors, operating costs, the Company's ability to eliminate operating losses in its Solutions Division, the Company's ability to efficiently and cost-effectively integrate its acquired businesses, and other risks and uncertainties that are detailed from time to time in the Company's filings with the Securities and Exchange Commission. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be attained. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

CONTACT: CalAmp Corp.
Rick Vitelle, 805-987-9000
or
Financial Relations Board
Lasse Glassen, 310-854-8313
lglassen@financialrelationsboard.com

SOURCE: CalAmp Corp.

Categories: Press Releases
View all Press Releases