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Published : December 12, 2008 | Author : admin
Category : Business and Economy | Total Views : 64 | Unrated

  





ATLANTA (GLOBE NEWSWIRE) - EMS Technologies, Inc. (Nasdaq:ELMG) announced today that it has signed a definitive agreement to acquire Moorestown, N.J.-based Formation, Inc., a provider of airborne wireless network products that enable in-flight passenger communications with terrestrial and satellite networks. Today's announcement represents the latest in a series of strategic acquisitions to strengthen EMS's position as a leading mobile broadband and asset tracking solutions provider. The acquisition would bolster EMS's aero-connectivity capabilities, enabling a far-reaching solution for passenger mobile access in the cabin.

EMS's purchase price for Formation is $40 million, with the acquired company having the ability to earn additional purchase price payments of up to $15 million based on its performance in near-term succeeding years. EMS expects the acquisition to be accretive and to add EBITDA of $5 million to $7 million the first year post-acquisition.

"Acquiring Formation signals EMS's continued investment in its aero-connectivity strategy to become a more comprehensive solutions provider. Our goal is to meet the growing demand for aeronautical communications from airlines and business aircraft owners, as well as governments," says EMS Technologies' President and CEO Paul Domorski. "With Formation, EMS covers the spectrum of air-connectivity solutions, delivering the platforms and systems airlines want across multiple satellite platforms," he says.

"EMS now has the capabilities to adapt products and technologies from one aero-connectivity application to another, enabling the Company to get to market faster and more profitably than companies entering the market today," added Neil Mackay, EMS Technologies' executive vice president and chief operating officer. In addition, Mackay noted that EMS and Formation enjoy common supplier relationships and complementary customer bases in the avionics, defense and transportation markets.

Formation's fastest-growing products are its rugged servers and cabin Wireless Access Points (WAP's), which enable aircraft broadband systems to extend connectivity to laptops and PDA's. Formation's hardware supports in-flight communications regardless of whether the connectivity is through terrestrial or satellite-based networks. Formation is an approved direct supplier to Airbus and also is a major supplier to Rockwell Collins, Aircell and Panasonic. Since 2006, Formation has generated a compounded annual growth rate of 30 percent and in 2007, sales grew by 57 percent.

R. Nim Evatt, president and CEO of Formation, will continue to lead Formation post-closing, reporting to Neil Mackay.

"Formation is excited to join a well-established industry leader of aeronautical satellite communications systems and a company with so many synergies with our business," says Evatt. "Being part of EMS will allow Formation to build on its manufacturing excellence, continue to serve our customers and more rapidly pursue new applications in our expanding aviation portfolio, including integration of in-flight information and entertainment systems."

EMS plans to retain Formation's current operations in Moorestown, N.J.

The parties anticipate the transaction to close by year's end, subject to customary closing conditions.

About Formation, Inc.

Formation, Inc. of Moorestown, NJ, USA designs and manufactures hardware and software products and provides related engineering services for the defense, aviation, data communications and transportation industries. Products include ToughDisk Rugged Hard Disks, Advanced Integrated Recorders, avionics-class servers, rugged wired and wireless networks and the Mobile Vehicle Tracker. For information, visit www.formation.com or call +1 856.234.5020.

About EMS Technologies, Inc.

EMS Technologies, Inc. (Nasdaq:ELMG) is a leading supplier of wireless connectivity solutions. With technology leadership positions in the aeronautical, defense and wireless logistics computing markets, EMS keeps people, systems and data connected, wherever they are -- on the ground, in the air, or in space. Headquartered in Atlanta, EMS employs 1,100 people worldwide in four business units: EMS SATCOM, LXE, EMS Defense & Space Systems and EMS Sky Connect. It has major manufacturing facilities in Atlanta, and Ottawa, Canada. For more information, visit EMS on the World Wide Web at www.ems-t.com.

The EMS Technologies, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5502

Statements contained in this press release regarding the Company's expectations for its financial results for 2008, and concerning the potential for Formation and the Company's SATCOM business and products, are forward-looking statements. Actual results could differ from those statements as a result of a wide variety of factors. Such factors include, but are not limited to:


-- economic conditions in the U.S. and abroad and their effect on
capital spending in the Company's principal markets;
-- customer response to new products and services, and general
conditions in our target markets;
-- the ability to effectively integrate an acquired business and
its technologies into our existing businesses and products, and
-- the risks that an acquisition could be dilutive to earnings or
that the acquired business and technologies do not perform as
expected.

Further information concerning relevant factors and risks are identified under the caption "Risk Factors" in the Company's annual report on Form 10-K for the year ended December 2007.

CONTACT:  EMS Technologies, Inc.
Gary Shell, Chief Financial Officer
770.729.6512
Public Relations
Media only
Anne Wainscott-Sargent
770.798.6811
pr@ems-t.com
www.ems-t.com

Source: EMS Technologies, Inc.



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