Alpha Gen Capital
Dec. 21, 2015, 1:47 PM
- The DOJ has cleared Comtech's (CMTL +1.3%) planned $430.8M ($5/share) all-cash purchase of telecom hardware/services provider TeleCommunication Systems (TSYS +0.4%). The deal was first announced in November,
- Comtech's tender offer for TCS shares is set to expire at midnight at the end of Jan. 5. TCS trades $0.03 below Comtech's offer price.
Nov. 23, 2015, 10:23 AM
- Comtech (CMTL -9%) is paying $430.8M in enterprise value, or $5/share, to buy telecom hardware and services provider TeleCommunication Systems (TSYS +12.4%). The price represents a 14% premium to TCS' Friday close, and is equal to 1.2x the company's sales for the 12 months ending Sep.30.
- The deal is expected to close "no later than March 2016." Comtech CEO Stanton Sloane: "TCS is a unique business and a leading provider of mission-critical C4ISR solutions and next generation emergency 911 services to leading cellular and VoIP providers." Comtech adds the deal lowers its exposure to "challenging" international business conditions, gives its entry into commercial markets (inc. public safety), and establishes it as a prime contractor for several U.S. government contracts.
- $12M in cost synergies are expected in the second year after closing, and $27.5M in transaction-related expenses are forecast. TCS has risen to $4.93; Comtech made a new 52-week low of $19.55 before bouncing a bit.
- The deal arrives four months after TCS said it's exploring strategic alternatives.
Jul. 6, 2015, 6:39 PM
- TeleCommunication Systems' (NASDAQ:TSYS) board has created a special committee to "explore strategic alternatives to enhance stockholder value." Lazard has been hired as an advisor.
- Shares haven't yet moved AH. With a current market cap of $206M, the wireless hardware/services provider wouldn't be hard for many of its peers to acquire, should one be interested.
Sep. 30, 2013, 8:39 AM
- TeleCommunication Systems (TSYS) and Marathon Patent Group (MARA.OB) enter into a patent alliance in which Marathon is acquiring certain wireless data patents from TeleCommunication.
- The patents relate to synchronization of data across mobile devices and servers.
- Separately, TeleCommunication sold 3 patents relating to an open architecture development platform with centralized synchronization to an undisclosed buyer.
Jul. 6, 2012, 10:42 AM
TeleCommunication Systems (TSYS -4.6%) is acquiring microDATA GIS, a provider of next-gen 9-1-1 call-management solutions, for $37M ($20M in up-front cash). TCS, whose existing E9-1-1 call-routing solutions support over half of all emergency calls, has obtained an $80M credit facility to finance the deal.| Jul. 6, 2012, 10:42 AM