Sign in Subscribe
Telecommunications equipment industry

Allen Telecom and LCC International Announce Strategic Merger Enhancing Position in Wireless Test and Measurement Equipment Market

Strategic Insights

— 1 min read

As part of a major agreement, Allen Telecom Inc. has exchanged its Comsearch division for LCC International's test and measurement equipment and related software analysis tools business. This strategic transaction will position Allen Telecom as a leading provider of test and measurement equipment, adding microwave and satellite expertise to LCC's market-leading RF engineering business. The deal will enhance both companies' long-term objectives, with Allen Telecom focusing on supplying its comprehensive product line to the wireless infrastructure market and LCC having an enhanced core business offering a complete spectrum of value-added services.

Key Takeaways:

  • Allen Telecom will gain a leading position in the wireless test and measurement equipment market, complementing its product line with a suite of test and measurement equipment and related software analysis tools.
  • LCC International will acquire Comsearch's expertise in microwave and mobile satellite engineering services, significantly enhancing its position in the RF engineering services market.
  • The transaction is subject to FTC review, completion of due diligence, and other closing conditions, with both companies expecting the deal to be accretive to earnings in 1999 and result in operating margin improvement based on existing operations synergies.
  • Robert G. Paul, President, and CEO of Allen Telecom, stated that the transaction supports the company's strategic objectives, allowing it to focus on its core competencies in manufacturing sophisticated wireless telecommunications infrastructure test and measurement equipment.
  • Dr. Geoffrey S. Carroll, President, and CEO of LCC, indicated that the deal supports the company's goal of transitioning to a primarily services-based business, enabling it to enter the microwave and satellite service businesses in a leading position.

Statistics:

  • The agreement will enhance Allen Telecom's position as a global provider of wireless test and measurement equipment and complements its range of wireless equipment products.
  • LCC International's test and measurement equipment business has a demonstrated track record of providing a unique and complete spectrum of value-added services including RF engineering, microwave engineering, program management, tower ownership, and management.
  • The transaction will result in operating margin improvement based on existing operations synergies, with both companies expecting the combination to drive future growth.

Sources:

  • Allen Telecom Inc. (NYSE: ALN)
  • LCC International, Inc. (Nasdaq: LCCI)
  • http://www.allentele.com
  • http://www.lcc.com
  • Private Securities Litigation Reform Act of 1995
  • Allen Telecom Inc.'s and LCC International, Inc.'s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q

Read more