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WirelessDevNet.com Press Release
TeleCommunication Systems buys microDATA GIS for $37M
TeleCommunication Systems Inc. has acquired a Vermont company that makes software used in 911 emergency communication systems.
Annapolis-based TCS (NASDAQ: TSYS) paid $37 million for privately held microDATA GIS Inc.
The deal will bolster TCS’s secure, emergency communications business and bring in more than $20 million in annual revenue for TCS, the company said.
TCS funded the purchase with $20 million in cash from a new secured credit facility from a consortium of lenders including Silicon Valley Bank, M&T Bank and GE Capital Bank. The credit facility is worth up to $80 million. It replaces with a lower interest rate an existing line of credit.
In addition to cash, TCS will also pay $14 million in promissory notes and performance-based payments to acquire microDATA GIS.
MicroDATA GIS, which was founded in 1983, has alliances with communications companies including CenturyLink (NYSE: CTL) and Cincinnati Bell (NYSE: CBB).
TCS is a maker of secure communication systems for the military and government agencies
About TeleCommunication Systems, Inc.
TeleCommunication Systems, Inc. (TCS) (NASDAQ: TSYS) is a world leader in highly reliable and secure mobile communication technology. TCS infrastructure forms the foundation for market leading solutions in E9-1-1, text messaging, commercial location and deployable wireless communications. TCS is at the forefront of new mobile cloud computing services providing wireless applications for navigation, hyper-local search, asset tracking, social applications and telematics. Millions of consumers around the world use TCS wireless apps as a fundamental part of their daily lives. Government agencies utilize TCS' cyber security expertise, professional services, and highly secure deployable satellite solutions for mission-critical communications. Headquartered in Annapolis, MD, TCS maintains technical, service and sales offices around the world. To learn more about emerging and innovative wireless technologies, visit www.telecomsys.com.
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