Intek announces $30 million agreement to acquire wireless communication business from NovAtel.LOS ANGELES--(BUSINESS WIRE)--Aug. 21, 1995--Intek Diversified Corp. ("Intek") Monday announced that it has signed a letter of intent with NovAtel Communications Ltd. ("NovAtel") of Calgary, Alberta to acquire certain wireless communication business, research and development, and manufacturing capability for a total consideration of US$30 million. Payment for the NovAtel assets will consist of a portion in cash payments over the next three years, a portion in common shares of Intek and warrants to purchase common shares of Intek. The completion of the transaction is subject to due diligence, final negotiations and regulatory approval. NovAtel is a world-class leader in the development and manufacture of wireless communication products for the cellular, mobile data, and telecommunication markets. NovAtel's 270 employees are involved in research, development, manufacturing and sales on a worldwide basis. The assets to be purchased by Intek include the Wireless Access Products business unit, the Personal Communication Products business unit, and a 120,000 square foot manufacturing facility in Calgary, Alberta. The Wireless Access Products business unit provides communication systems for low to medium density wireless subscriber populations, particularly suitable for rural or remote areas worldwide. The products range from portable three-channel cellular compatible systems up to fully featured wireless systems capable of supporting over 80,000 subscribers. These wireless systems provide access and an affordable alternative to wireline or switched telephone networks. The Personal Communication Products business unit is a new business with technology to provide high quality wireless, cellular and RF products for customers requiring cellular data, CDPD (Cellular Digital Packet Data) A low-speed, digital, wireless data network that is an enhancement to an existing analog cellular network. Based on IBM's CelluPlan II, CDPD provides a packet overlay onto the AMPS network and moves data at 19. , office telesystems and wireless PBX/KSU applications. The business unit has leading edge technology for wireless, digital 900 MHz (MegaHertZ) One million cycles per second. It is used to measure the transmission speed of electronic devices, including channels, buses and the computer's internal clock. A one-megahertz clock (1 MHz) means some number of bits (16, 32, 64, etc. telephones. This technology has the capability to form the basis for PCS (1) (Personal Communications Services) Refers to wireless services that emerged after the U.S. government auctioned commercial licenses in 1994 and 1995. This radio spectrum in the 1. infrastructure and customer telephones for the emerging US market. John Simmonds, chief executive officer of Intek, stated that, "This acquisition provides Intek with a state of the art RF manufacturing facility to produce the Roamer One subscriber 220 MHz radios and to move some of the Midland manufacturing to North America. "The technology at NovAtel will also give Intek the opportunity to enter the growing export market for wireless telecommunication systems beyond two-way radios and to be a supplier of infrastructure and subscriber equipment to the PCS market in the United States." Roamer One, a subsidiary of Intek, is constructing and managing a nationwide Specialized Mobile Radio See SMR. network in the United States. The company has entered into contracts with licensees of 220 MHz systems who collectively represent over 2250 channels located throughout the United States. Upon completion of the system built out by the end of the year, Roamer One will be one of the largest SMR (Specialized Mobile Radio) The communications services used by police, ambulances, taxicabs, trucks and other delivery vehicles. Throughout the U.S., approximately 3,000 independent operators are licensed by the FCC to offer this service, which provides always-on service providers in the recently licensed 220 MHz spectrum. Through its systems integration division, Simmonds Communications Ltd. has been responsible for the design and construction of the radio systems infrastructure for the Roamer One network. Intek Diversified Corp. is a publicly traded company publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. on the NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on small cap exchange (Symbol - IDCC IDCC Integrated Dual-use Commercial Companies ). Intek acquired Roamer One in September 1994. Recently Intek announced the proposed acquisition of SCL's wireless communications business including the Midland two-way radio business and SCL's systems integration division. The transaction, which is subject to shareholder approval, is expected to be completed later this year. Simmonds Communications Ltd., Toronto, Ontario, is a diversified electronics company involved as a manufacturer, distributor, and systems integrator in the global wireless communications market and the production and distribution of electronic components. SCL (1) (Switch-to-Computer Link) Refers to applications that integrate the computer through the PBX. See switch-to-computer. (2) A file extension used for ColoRIX bitmapped graphics file format (640x400 256 colors). (language) SCL - 1. is listed on The Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. (Symbol - SMM (System Management Mode) An energy conservation mode built into Intel SL Enhanced 486 and Pentium CPUs. During inactive periods, SMM initiates a sleep mode that turns off peripherals or the entire system. ). CONTACT: Intek Diversified Corp. David Neibert, 1-(800)-306-ROAM or 310/366-7712 (Fax) |
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