TMCnet Feature

EMS Technologies is a provider of wireless connectivity products for the aerospace, aviation and the resource management sectors, according to a company statement. It also provides satellite communication connectivity solutions and mobile networking, added Forbes.

The deal makes sense to industry observers.

In an analysis of the deal, Frost & Sullivan Senior Consultant Chirag Rathi commented that, “Apart from the obvious technology gained for the aerospace division of Honeywell (News - Alert) with the acquisition of EMS Technologies, an added advantage of this acquisition is the access to the expertise of EMS’s Global Tracking division.”

“A world in global telematics providing global end-to-end tracking and monitoring solutions for the transportation, security, maritime, and the oil and gas industries, EMS could provide great benefits to Honeywell’s portfolio of supply chain management, automation, telematics, and terminal automation offerings,” Rathi added. “Other advantages include EMS’s LXE division which is a leading manufacturer of rugged vehicle-mounted, handheld and wearable mobile computers. These mobile computer solutions would enhance the offerings of Honeywell’s Automation and Control Solutions (ACS (News - Alert)) and aerospace businesses.”

In his analysis of the deal, TMCnet’s Doug Mohney said that, “Bringing EMS products into Honeywell’s aerospace business means the company will be able to offer high-speed mobile wireless and satellite data solutions – a good place to be given the rising demand for always-on connectivity via smartphones, tablets, and PCs.”  

The deal was already approved by both companies’ Boards of Directors. But the deal still needs approval from regulators, and is expected to be closed during the third quarter of 2011.

“With the assistance of experienced outside advisors, we determined that this transaction is the best way to maximize value for our shareholders,” Jack Mowell, chairman of EMS’s Board of Directors, said in a company statement.

Forbes also reported that Honeywell will give EMS shareholders $33 in cash for each EMS share owned.

EMS has over 1,200 employees who work in Atlanta, Moorestown, N.J., and Ottawa, Canada, according to information posted on the company’s website.

In addition, EMS saw revenue in 2010 of $355.2 million, the company said.

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