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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