NovAtel Inc. Buys Antenna Company

NovAtel Inc. has acquired privately held antenna manufacturer Antcom Corporation (Antcom) for $5 million in cash and an additional $1 million in cash subject to Antcom’s achievement of certain financial targets for the calendar year ended December 31, 2007.

NovAtel Inc. has acquired privately held antenna manufacturer Antcom Corporation (Antcom) for $5 million in cash and an additional $1 million in cash subject to Antcom’s achievement of certain financial targets for the calendar year ended December 31, 2007.

Antcom, located in Torrance, California, specializes in the design, development, and manufacturing of antenna and microwave products for commercial and military customers in the space, ground, and avionics telecommunications markets. The company offers a variety of GNSS products, including L1 and L1/L2 active and passive antennas as well as integrated GPS/GLONASS/Galileo L1 and L2 antennas.

Additionally, Antcom produces antennas for OmniSTAR’s commercial, satellite-based GPS augmentation system, and a variety of satellite communications equipment including Iridium, Inmarsat, Globalstar, XM, Thuraya and and UHF/L/S/C band antennas. The company also produces microwave devices including wide-band power dividers, beam forming networks, filters, and low noise amplifiers.

"The Antcom acquisition represents a significant moment in NovAtel’s history as we expand into multi-site, multi-national business operations," says Jon Ladd, NovAtel’s president and CEO. "A key element of NovAtel’s growth strategy is to create strategic partnerships and acquire businesses that have complementary technology, products and provide access to markets. Antcom is not only a profitable and successful antenna company with leading complementary technology and a broad range of customers; Antcom also represents a growth platform for NovAtel, due to the numerous customer, market and technology synergies between our two companies."

Antcom will continue to operate in Torrance, California, and sell products under the Antcom brand, says Sean Huynh, Antcom’s vice-president and one of the company’s founders. Antcom will be operating in a business-as-usual fashion and customers and suppliers should expect no changes or disruptions in service or changes in their Antcom contacts.

NovAtel expects Antcom to contribute revenues of $7–7.4 million and be marginally accretive at the net income level over the first 12 months of operation.