CalAmp buys Wireless Matrix for $53M
Oxnard-based wireless products company CalAmp Corp. said Dec. 20 that it is buying the U.S. operations of Wireless Matrix Corp. for $53 million in cash.
CalAmp said it expects the deal, which will likely close in the first quarter of 2013, to be accretive to its non-GAAP earnings starting in 2014. Wireless Matrix is a provider of software and communications to improve service fleet performance metrics.
“I am confident that the combination of our businesses will accelerate growth beyond what either company would likely experience independently given the substantial synergies that exist, particularly in terms of product platforms, customers and channels,” Michael Burdiek, president and CEO of CalAmp, said in a statement. “I look forward to leveraging the strengths of our two companies in addressing the needs of the rapidly growing mobile resource management marketplace.”
Under the terms of the agreement, CalAmp will acquire the U.S. subsidiary of Wireless Matrix. As part of the assets acquired in the deal, CalAmp said it expects to receive about $5 million in cash.
CalAmp said it plans to fund the purchase from the proceeds of an equity offering of about $35 million, including bank debt and on-hand cash.
CalAmp also reported that its third-quarter net income was $4.2 million, or 14 cents per share, compared to $1.7 million, or 6 cents per share, a year earlier.
Those earnings come on third-quarter revenue of $44.3 million, up about 35 percent compared to $32.8 million in the same quarter a year earlier.
