Comtech Announces Strategic Deal to Acquire Solacom Technologies
Comtech Telecommunications Corp.announced today it has agreed to acquire Solacom Technologies Inc., a leading provider of Next Generation 911 solutions for public safety agencies, for $33.0 million.
Fred Kornberg, President and Chief Executive Officer of Comtech, said, “We believe Solacom is a leader in technology innovation in the NG911 space and we are delighted to have them join us. With safety and security markets at growth inflection points, the Solacom acquisition is a significant step in our strategy of enhancing our solutions offerings, particularly with respect to NG911 capabilities. We look forward to working with Solacom’s talented workforce to deliver innovative market-leading products and services to both domestic and international public safety agencies.”
Pierre Plangger, Chief Executive Officer of Solacom, said, “I believe this strategic combination with Comtech is compelling for our customers and employees. I expect our customers will benefit from significantly greater resources and more diverse product offerings, and our employees will benefit from being part of a larger, more diversified company.”
Mr. Kornberg and Mr. Plangger stated, “We are looking forward to joining forces to serve the growing and important public safety market and, in the interim, we plan no changes in any scheduled or committed rollouts from either company and anticipate honoring all existing agreements with customers, VARs, distributors, OEMs and other strategic partners.”
Key Strategic Benefits for Comtech Include:
- Expands Comtech’s presence in the public safety solutions market, which has a growing need for NG911 systems;
- Enhances Comtech’s relationships with existing customers and allows it to offer an immediate upgrade path to next-generation call handling solutions;
- Brings new relationships with state and local agency customers, as well as certain select international customers; and
- Increases the proportion of Comtech’s annual revenues derived from recurring hosted and maintenance solutions.