Satellite Technology Feature Article
November 17, 2009
TeleCommunication Systems Acquires Sidereal Solutions
By Anil Sharma, TMCnet Contributor
TeleCommunication Systems, Inc., a provider of mission-critical wireless communications, reportedly has acquired all assets of privately held Sidereal Solutions, Inc., a satellite communications technology engineering, operations and maintenance support services company.
According to company officials, Sidereal has been a business partner of TCS’ government solutions group since 2007, providing field service support for satellite communications and network engineering, technical writing and training, and other information technology services in support of TCS’ Swiftlink line of deployable systems.
Based in the metro Atlanta area, Sidereal’s more than forty professionals comprise personnel from all four U.S. military service components with expertise in the logistics support of military operations for tactical communications, supporting multiple system designs in addition to Swiftlink.
Sidereal has grown rapidly, with an expected fourth quarter annualized revenue run rate of about $6 million per quarter, and expected EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) of about 17 percent of revenue.
Earlier this month TeleCommunication Systems (News - Alert) had announced the acquisition of privately-held Solvern Innovations, Inc., a communications technology solutions company that specializes in cyber-security.
Based in Baltimore County, Maryland, Solvern is a provider of comprehensive communications products and solutions, training, and technology services for the Department of Defense and the intelligence community. With more than 100 employees, Solvern provides support and training for multiple security-based platforms.
The acquisition of Solvern extends TCS’ core competency in secure network communications and encryption, which are integral to TCS’ secure satcom and wireless carrier businesses.
Post-acquisition operations will be reported as part of the TCS government segment’s services category.
Solvern’s full year 2009 revenue, including the pre-acquisition part of the year, is expected to be about $18 million, with an expected fourth quarter revenue run rate of about $7 million and expected EBITDA of about 12 to 15 percent of revenue.
Anil Sharma is a contributing editor for TMCnet. To read more of Anil’s articles, please visit his columnist page.
Edited by Michael Dinan
