MELVILLE, N.Y. –
January 8, 2019– Comtech Telecommunications Corp. (“Comtech”)
(Nasdaq: CMTL) announced today it has agreed to acquire Solacom
Technologies Inc. (“Solacom”), a leading provider of Next Generation 911
(“NG911”) 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.
About Solacom’s Next Generation 911 Solutions
-
Offers best-in-class call handling solution with integrated
text-to-and-from 911 on a unified platform; -
Provides flexible user interface, capable of adapting to varying
customer environments and preferences; -
Provides powerful call conferencing capabilities and enhanced
reporting capabilities; and -
Offers geospatial 911 call display and call control directly from a
customized map.
Mr. Plangger, who is currently a large shareholder of Solacom, will
continue to serve as CEO and President of Solacom.
The impact of the Solacom acquisition with respect to Comtech’s fiscal
2019 financial guidance will be dependent on the timing of the closing
of the transaction, which is expected to occur sometime during Comtech’s
fiscal quarter ending April 30, 2019. Comtech will provide financial and
other information concerning the Solacom transaction during its
regularly scheduled conference call to review the results of its fiscal
quarter ending January 31, 2019, the exact date and time of which will
be announced in advance. A separate presentation related to the Solacom
acquisition is available at www.comtechtel.com.
Proskauer Rose LLP and Torys LLP are serving as legal counsel to
Comtech. Menalto Advisors is serving as financial advisor to Solacom.
Blake, Cassels & Graydon LLP and Kelly Santini LLP are serving as legal
counsel to Solacom.
The transaction is subject to customary closing conditions.
About Comtech
Comtech Telecommunications Corp. designs, develops, produces and markets
innovative products, systems and services for advanced communications
solutions. Comtech sells products to a diverse customer base in the
global commercial and government communications markets.
About Solacom
Solacom’s 911 call handling and management solutions are built on more
than 30 years of research and innovation in the application of advanced
hardware and software technologies for public safety. Today, Solacom’s
Guardian 911 solutions support thousands of agencies affecting millions
of lives annually. From dense urban environments to statewide
deployments, Solacom solutions are trusted to streamline 911 call
handling and management processes and enable more efficient collection
of critical information in emergency situations. For more information,
visit: www.solacom.com.
Forward-Looking Statements
Certain information in this press release contains statements that are
forward-looking in nature and involve certain significant risks and
uncertainties. Actual results could differ materially from such
forward-looking information. The Securities and Exchange Commission
(“SEC”) filings of Comtech Telecommunications Corp. identify many such
risks and uncertainties. The forward-looking information in this press
release could be affected by many factors including, without limitation:
risks associated with the ability to consummate the transaction and the
timing of the closing of the transaction; the ability to successfully
integrate operations and employees; the ability to realize anticipated
benefits and synergies of the transaction; the potential impact of the
announcement of the transaction or consummation of the transaction on
relationships, including with employees, customers and competitors; the
ability to retain key personnel; the ability to achieve performance
targets; changes in financial markets, interest rates and foreign
currency exchange rates; and those additional risks and factors
discussed in reports filed with the SEC by Comtech Telecommunications
Corp. from time to time, including those discussed under the heading
“Risk Factors” in its most recently filed Annual Report on Form 10-K. We
undertake no duty and have no obligation to update any forward-looking
statements contained herein.
PCMTL
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Michael D. Porcelain, Senior Vice President and Chief
Operating Officer
631-962-7000
[email protected]
