CalAmp to acquire operations of Wireless Matrix for USD53m
Dec 21, 2012 (M2 EQUITYBITES via COMTEX) --
CalAmp Corp (Nasdaq:CAMP), a provider of wireless products, services and solutions, announced on Thursday the signing of a definitive agreement to acquire the operations of Wireless Matrix Corporation (TSX : WRX), a wireless data communications solutions company.
Under this definitive agreement, CalAmp will acquire the US subsidiary of Wireless Matrix, which conducts all of its operations, for a cash payment of USD53m. Also, as a part of the assets to be acquired, CalAmp expects to receive cash in the estimated amount of USD5.0m. Wireless Matrix had posted total revenues of approximately USD30m a year based on its Q2 results.
CalAmp said that it will fund this purchase from the proceeds of an equity offering of approximately USD35m, bank debt and on-hand cash.
This acquisition is expected to bring mobile workforce management applications to Calamp's core verticals and is also expected to increase subscription and SaaS-based revenues to approximately 20% of sales.
Also, the transaction is expected to be accretive to CalAmp's non-GAAP earnings per share in fiscal 2014 and beyond and to significantly improve CalAmp's competitive positioning and growth prospects.
The transaction, which is subject to customary closing conditions, is expected to be completed in March 2013.
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