VIENNA, Va., 18 Nov. 2005. The Allied Defense Group, Inc. announces the acquisition of Global Microwave Systems (GMS), of Carlsbad, Calif., in a cash and stock transaction.
Incorporated in 1990 in San Diego, Calif., GMS pioneered the development of technologically advanced communications products for the commercial television broadcast and law enforcement surveillance industries. GMS designs and manufactures miniature and sub-miniature FM and digital transmitters, receivers, and related equipment for investigative, surveillance, and security applications, and live TV news/sports/entertainment coverage.
GMS products are currently in use by both U.S. and coalition forces in counter-insurgency and anti-terrorism operations abroad. Because of their sub-miniature size, low power requirements, high fidelity, and long ranges, they have proven ideal for incorporation into the sensor suites of unmanned vehicles.
Other users include the federal law enforcement community, which uses GMS products in organized crime, narcotics, and anti-terrorism investigations and prosecutions.
Transaction terms were not announced, though the company did say the acquisition was financed in part through a draw on its acquisition line of credit with Patriot Capital Funding, Inc. The addition of GMS is expected to be accretive to current operating results and has been factored into the previously announced full-year 2005 guidance.
"GMS is a strong company and a smart acquisition, even as a stand-alone firm. Focus on research and development has made it the foremost supplier of the most advanced, proprietary equipment in the industry. The future for this company's technology is very bright. The work they have done with the next generation of high definition digital video is particularly exciting," said Major General (Ret) John J. Marcello, CEO and president of The Allied Defense Group.
"Perhaps more importantly, GMS is also a direct complement to our Electronic Security Group -- in fact, GMS has been a key supplier and partner to NS Microwave (NSM) for a number of years. GMS carries striking synergies with NSM, making them both more competitive in the industry. The acquisition of GMS not only enhances the growth, profitability, and technology of our electronic security division, but it pulls together a suite of capabilities with which to attack larger, more complex security problems. As a group, we are a much more potent entity."
GMS will continue to operate from its current location in Carlsbad, Calif., headed by company president and co-founder Sam Nasiri.
"I would like to congratulate Sam Nasiri on his magnificent company, which is the direct result of his vision and hard work. He will be an important new member of our team and I look forward to working with him. GMS is a vibrant company, with world-class innovation, and we are very happy to welcome Sam and the GMS team to the Allied family," concluded Marcello.
Nasiri said, "GMS is excited to be a member of The Allied Defense Group. The outstanding support of the company and its management team will provide significant benefit to our existing and future customers as we continue to grow."
The Allied Defense Group, Inc. is a diversified international defense and security firm which: develops and produces conventional medium caliber ammunition marketed to defense departments worldwide; designs, produces and markets sophisticated electronic and microwave security systems principally for European and North American markets; manufactures battlefield effects simulators and other training devices for the military; and designs and produces state-of-the-art weather and navigation software, data, and systems for commercial and military customers. For more information, see www.allieddefensegroup.com.
