TCS Buys MicroDATA GIS for $37M (7/6/12)
TeleCommunication Systems (TCS) acquired privately held microDATA GIS, a provider of next-generation 9-1-1 (NG 9-1-1) software and solutions. The aggregate acquisition consideration is about $37 million, comprised of $20 million in cash at closing, plus $14 million in promissory notes and performance-based earn-out opportunities. TCS is financing the cash portion with an updated bank term loan arrangement.
microDATA's technology and expertise expands TCS' end-to-end public-safety communications solutions in several ways. The company has a mature geographical information system (GIS) product and tools suite, comprehensive training programs, and large, highly scalable GIS data gathering and consolidation capabilities.
microDATA also adds a suite of public-safety answering point (PSAP)-based customer premise equipment, including CAD integration, dashboards and call management products to the TCS suite of solutions.
microDATA's three channel alliances with CenturyLink, a nationwide operator, and regional operator Cincinnati Bell enhance distribution for TCS' public-safety solutions. With the addition of microDATA's assets to its existing capabilities, TCS can offer solutions for the entire ecosystem, creating the opportunity for a stream of recurring software maintenance and network monitoring revenue.
"Combining our expertise and technology with TCS' existing 9-1-1 technology and deeper bench of support will provide a winning combination that the industry has yet to experience,” said Bruce Heinrich, founder of microDATA. “We are excited to join forces with TCS, because it is clear that they share our commitment to NENA i3 and our compliant solution roadmap, and we feel we can increase the pace of industry adoption with this visionary partner."
microDATA executive Christine Heinrich will lead the newly constituted and TCS wholly owned subsidiary as vice president of NG 9-1-1. Jason Heinrich will become vice president of NG 9-1-1 product development. Both will report to Chris Nabinger, senior vice president of TCS' safety and security group.
"We know that this business, and particularly NG 9-1-1, has high barriers to entry, because state-level homeland security departments and public-safety jurisdictions have rigorous selection criteria and processes for 9-1-1 equipment procurement,” said Maurice B. Tose, TCS chairman and CEO. “microDATA has been very successful at winning contracts, including with the Department of Defense, using its standards-based solutions that are engineered in a manner that is highly complementary to our technology."
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