TeleCommunication Systems Buys MicroDATA GIS
Jul 11, 2012 (Close-Up Media via COMTEX) --
TeleCommunication Systems, Inc. (TCS), a company focused on mobile communication technology, announced it has acquired privately-held microDATA GIS, Inc., a provider of Next Generation 9-1-1 (NG9-1-1) software and solutions.
According to a release on July 6, the aggregate acquisition consideration is approximately $37 million, comprised of $20 million in cash at closing, plus $14 million in promissory notes and performance-based earn-out opportunities. TCS is financing the cash portion with an updated bank term loan arrangement.
MicroDATA's technology expands TCS' public safety communication solutions in several ways. MicroDATA has a mature Geographical Information Systems (GIS) product and tools suite, training programs and scalable GIS data gathering and consolidation capabilities.
These capabilities are key to the business, because NG9-1-1 solutions require a detailed GIS data set in order to operate. MicroDATA also adds a suite of Public Safety Answering Point (PSAP)-based customer premise equipment, including computer-aided dispatch integration, dashboards and call management products to the TCS suite of solutions. MicroDATA's three channel alliances with CenturyLink, a second nationwide operator, and regional operator Cincinnati Bell all industry leaders in public safety communications enhance distribution for TCS' public safety solutions. MicroDATA's market position and history of accomplishments has grown steadily since its inception in 1983 and complements TCS' history of serving the public safety community, including its recent SMS911 and mobile alert solutions.
NG9-1-1 technology is a growing market, driven by the need for public safety agencies to lower operating costs through conversion to less-expensive IP (Internet protocol)-based systems, and the desire to provide the public with more advanced communications options, such as text-to-911 and other multi-media communications (video, photos, etc.). In a September 2011 report, the Federal Communications Commission (FCC) predicted that state and local governments will spend up to $1.2 billion over the next 10 years for NG9-1-1 upgrades, with an additional $1.5 billion spent on recurring connectivity, hosting and operations and maintenance. With the addition of microDATA's assets to its existing capabilities, TCS is now able to offer solutions for the entire ecosystem, creating the opportunity for a stream of recurring software maintenance and network monitoring revenue.
Bruce Heinrich, founder of microDATA, said: "Combining our expertise and technology with TCS' existing 9-1-1 technology and deeper bench of support will provide a winning combination that the industry has yet to experience. We are excited to join forces with TCS, because it is clear that they share our commitment to NENA i3 and our compliant solution roadmap, and we feel we can increase the pace of industry adoption with this visionary partner."
MicroDATA executive Christine Heinrich will lead the newly constituted and TCS subsidiary as vice president of NG9-1-1. microDATA executive Jason Heinrich will become vice president of NG9-1-1 product development. Both will report to Chris Nabinger, senior vice president of TCS' Safety and Security Group.
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