TCS Acquires Networks In Motion for $170 Million
TeleCommunication Systems (TCS), a provider of mission-critical wireless communications, has entered into a definitive merger agreement to acquire Networks In Motion, a privately held provider of wireless navigation solutions for GPS-enabled mobile phones. According to a press release, TCS is paying an aggregate of $170 million for Networks In Motion.
The merger consideration will be paid in a combination of cash, TCS common stock and promissory notes. Networks In Motion's Board of Directors has unanimously adopted the merger agreement and recommended its approval by Networks In Motion's stockholders.
The merger was a natural one for TCS, which specializes in wireless text messaging and location-based technology, including E911 services and commercial applications like navigation. TCS customers include wireless and VoIP carriers, cable MSOs, automotive telematics vendors and agencies of the U.S. Departments of Defense, State and Homeland Security. TCS is one of six primary vendors on a $5 billion Army Worldwide Satellite Systems Contract vehicle.
"We believe the combination of Networks In Motion applications with our current offerings of carrier infrastructure and applications for location-based services will enhance our value proposition for this exciting market," said Maurice B. Tos, CEO of TCS, in a statement.