EMS Technologies completes the sale of its EMS wireless division to Andrew Corporation
Dec 04, 2006
EMS Technologies, Inc. (NASDAQ:ELMG) announced today that it has completed the sale of its EMS Wireless division to Andrew Corporation (NASDAQ:ANDW), a global leader in communications systems and products.
At the closing, EMS received approximately $50 million in cash, representing the $50.5 million purchase price less an estimate of adjustments arising from pre-closing changes in certain current assets and liabilities.
EMS Wireless, formed in 1993, employs approximately 200 people and is headquartered in Norcross, Georgia. The division's core product lines are base station antennas for mobile wireless and fixed wireless applications, and in-building and repeater solutions. As a result of the sale, Andrew has acquired all of the operating assets, including intellectual property and customer good will, associated with the Wireless division's business operations, has assumed substantially all of its operating liabilities, and has employed substantially all of the personnel previously employed by EMS in the division.
Paul B. Domorski, president and chief executive officer of EMS Technologies, stated, "This transaction has been brought to a successful conclusion, on a tight schedule, through the hard work and excellent cooperation of personnel at Andrew, here at EMS, and in our former Wireless division. As I've stated before, I believe EMS Wireless and its employees have a bright future with a larger organization that has both the size and broader product line to address the unique issues encountered in Cellular/PCS equipment markets.
Domorski continued, "This transaction will enable me and other management personnel of EMS Technologies to concentrate on the development of our three remaining businesses, Defense & Space Systems, LXE and EMS SATCOM. The strength of these businesses and our strong financial resources will enable us to fund internal R&D projects, as well as to pursue market and strategic opportunities."