Wireless communications provider TeleCommunication Systems (TCS) has has entered into a definitive merger agreement to acquire Networks In Motion for an aggregate of $170m, paid in a combination of cash, TCS common stock and promissory notes.
Networks In Motion board of directors had unanimously adopted the merger agreement and recommended its approval by Networks In Motion’s stockholders. The transaction is expected to close in December 2009.
Headquartered in Orange County, California, and with international offices in Sweden and Spain, Networks In Motion is a privately held wireless navigation services provider for GPS-enabled mobile phones. It delivers location-centric information to people on the go, offering access to local directories, maps and driving directions.
TCS said that it had agreed to file a registration statement with the Securities and Exchange Commission registering the resale of the shares of TCS Common Stock issued in connection with the transaction.
Maurice Tos, chief executive officer of TCS, said: Location-based services are experiencing substantial growth and we believe that this is the right time to invest to strengthen our participation in this space. 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.
However, the transaction is subject to the terms and conditions of the merger agreement, the approval of Network In Motion’s stockholders, and customary regulatory clearance and other closing conditions.
Last month, Telecommunication Systems has acquired substantially all of the assets of the privately-held Sidereal Solutions, a provider of communications technology services.