Under the terms of the transaction, Comarco will receive approximately $12.75 million in cash, with a portion of the cash purchase proceeds to be placed in escrow.
The closing of the proposed transaction, which is subject to various closing conditions, including approval of the sale by Comarco’s shareholders and other conditions, is anticipated to occur in the fourth quarter of Comarco’s current fiscal year.
In late 2006, Ascom Mobile Test Solutions and Comarco’s wireless test solutions (WTS) unit established a global alliance to develop the next-generation quality of service (QoS) benchmarking product called Symphony. The product was completed and marketing began in late 2007. With the exchange and integration of technologies through this effort, the two companies view the acquisition as the next logical step in their market and product development plans, said Camarco.
Sam Inman, president and CEO of Comarco, said: The sale of WTS represents another very important step in Comarco’s strategy to focus our resources on expanding our promising ChargeSource business. In addition, the divestiture should allow us to dramatically reduce our operating costs. We have worked closely with Ascom since late 2006 on the development and marketing of our recently introduced Symphony QoS benchmarking product for cellular networks. This transaction is a natural extension of our close relationship.
Fritz Gantert, general manager of security solutions at Ascom, said: This acquisition will significantly strengthen Ascom’s position in the global market for mobile QoS and stationary network testing. We will be able to leverage the success of the growing Symphony product line, placing engineering and support resources closer to our customers, while offering an extended range of products tailored to the needs of individual markets.
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