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Telecommunications equipment industry

Intek Diversified Corp. Acquires Simmonds Communications Ltd.'s Wireless Communications Business

Strategic Insights

— 1 min read

Intek Diversified Corp. has signed a definitive agreement with Simmonds Communications Ltd. to acquire the latter's wireless communications business, including substantially all of their two-way radio equipment and systems integration businesses. The acquisition, which represents a significant expansion of Intek's presence in the wireless communications market, is subject to customary regulatory approval and shareholder approval from both companies. As part of the agreement, Intek will issue 15 million shares of common stock to Simmonds Communications Ltd., representing approximately 60% of all shares outstanding.

Key Takeaways:

  • Intek Diversified Corp. has agreed to acquire Simmonds Communications Ltd.'s wireless communications business, including two-way radio equipment and systems integration businesses.
  • The acquisition is subject to regulatory approval and shareholder approval from both companies.
  • Intek will issue 15 million shares of common stock to Simmonds Communications Ltd., representing approximately 60% of all shares outstanding.
  • The acquired business will be integrated into Intek's Torrance, California-based subsidiary, Roamer One Inc.
  • Roamer One Inc. plans to offer a nationwide network of dispatch and data services to its customers, with subscriber billing, technical support, and marketing services to be provided by Intek.
  • Midland International Corp. will distribute all privately labeled subscriber equipment intended for use on the Roamer One network.
  • SCL Systems and Infrastructure will supply and install infrastructure equipment for the Roamer One network in the United States.

Statistics:

  • The acquisition involves the sale of substantially all of Simmonds Communications Ltd.'s wireless communications business.
  • The acquired business has over 2,250 channels located on sites throughout the United States.
  • Intek will issue 15 million shares of common stock to Simmonds Communications Ltd., representing approximately 60% of all shares outstanding.
  • The transaction is expected to be completed during the fourth quarter of 1995.
  • Roamer One Inc. plans to offer a nationwide network of dispatch and data services to its customers.

Sources:

  • PRNewswire, "Intek Diversified Corp. and Simmonds Communications Ltd. Sign Definitive Agreement for Sale of SCL's Wireless Communications Business" (July 3, 1995).
  • Nasdaq Small Cap Market, "Intek Diversified Corp. (IDCC)".
  • Toronto Stock Exchange, "Simmonds Communications Ltd. (SMM)".
  • Intek Diversified Corp., "Press Release: Intek Diversified Corp. and Simmonds Communications Ltd. Sign Definitive Agreement" (June 30, 1995).

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