Canadian WiMAX player Vecima Networks Inc. will acquire software-defined radio vendor Spectrum Signal Processing Inc. for around $15.4 million in a cash-and-share transaction expected to close in April.
Vecima will shore up its competencies in broadband wireless with the acquisition of 20-year-old Spectrum and intends to target high-growth commercial markets such as public safety, homeland security and satellite communications, which are all markets that often demand a software-configurable radio solution such that various agencies can communicate through in an interoperable manner.
“Vecima and Spectrum combine to offer a compelling product portfolio for the commercial and defense broadband wireless markets,” said Surinder Kumar, president and CEO of Vecima, in a prepared statement. “Together, we expect to bring the power of software-defined radio technologies to the commercial broadband wireless market and introduce Vecima’s portfolio of last-mile wireless solutions to Spectrum’s current market.”
On Feb. 13, Vecima reported record sales of $23 million in its second quarter, representing an increase of 22 percent over the same period last fiscal year. Vecima’s year-to-date revenue for the six months ended Dec. 31 increased by $6.6 million, or 18 percent, to $43.3 million, as compared to $36.7 million for the same period a year earlier. During the company’s second quarter earnings call, management reiterated that 20 to 30 percent revenue growth is expected in the current fiscal year relative to Vecima’s $80 million in sales for fiscal 2006.
Vecima Networks Inc. www.vecimanetworks.com
Spectrum Signal Processing Inc. www.spectrumsignal.com
