General Dynamics (NYSE: GD) announced today that it has executed a definitive agreement to acquire IPW Holdings, Inc., the parent company of IPWireless, Inc., a provider of 3G and 4G LTE wireless broadband network equipment and solutions for first-responder and military customers. The value of the cash transaction has not been disclosed.
The acquisition has been approved by the boards of directors of both companies and is subject to normal regulatory review. General Dynamics expects the transaction to be completed in the third quarter of 2012.
IPWireless produces wireless-network components, user devices and end-to-end systems that enable first-responders and other mobile users to access lifesaving data and applications at very high speeds, making tools such as real-time fingerprint identification and high-resolution video more available. Built on commercial networking standards, IPWireless' products improve first responders' effectiveness and safety by providing them with greater access to information.
The company's 700 MHz LTE (Long Term Evolution) products and mobile broadcast solutions are intended to meet the emerging requirements of the nationwide interoperable broadband network required in the recently enacted Middle Class Tax Relief and Job Creation Act of 2012. That network is envisioned to provide municipal agencies with priority access to services such as mobile field reporting and photo and crime databases, for improved law enforcement and officer safety.
"First responders need fast, reliable and secure access to full-motion video and other high-bandwidth services to protect the public and themselves," said Chris Marzilli, president of General Dynamics C4 Systems. "Recent legislative initiatives have accelerated the adoption of these technologies throughout the public safety community and IPWireless provides the end-user devices and scalable networking components that enable that access.
"Building on our legacy as a trusted provider of mission-critical military networking capabilities and applications that deliver access to lifesaving data on the battlefield, IPWireless' technologies will allow General Dynamics to expand our commercial networking solutions to better serve the needs of our U.S. defense and civilian customers, and international customers as well," Marzilli said.
Networks that rely on IPWireless' equipment include the New York City Wireless Network (NYCWiN), the nation's largest multi-agency government network. Spanning all five boroughs of New York City, the network comprises approximately 400 cell sites, providing prioritized and preemptive network access by government officials and emergency response personnel. NYCWiN delivers applications such as wireless video, remote traffic control, sensor management and automatic vehicle location. It also supports a wide range of city functions such as building and health inspection and monitoring key municipal installations and utilities.
IPWireless technology is also being deployed in an LTE communications system supporting Adams County, Colorado. That network will deliver public safety users access to next-generation broadband capabilities such as streaming video, remote data access and information sharing.
"IPWireless has been a standard bearer in the emerging broadband segment and looks forward to continuing to work with its existing partners and enhancing General Dynamics' portfolio with this contemporary, mission-critical capability," said Bill Jones, chief executive officer for IPWireless.
When the transaction is completed, IPWireless will be renamed General Dynamics Broadband and will operate as a subsidiary of General Dynamics C4 Systems, which is based in Scottsdale, Ariz. General Dynamics C4 systems designs, manufacturers and delivers trusted and secure communications systems, command and control systems and operational hardware to customers within the U.S. Department of Defense, federal and civilian agencies, the intelligence community and international customers.
Source: General Dynamics Corporation (NYSE: GD)
Date: May 8, 2012