Acquisitions: Name of the game for land mobile radio
Com-Net Critical Communications buys Ericsson’s Private Radio Systems operations. Relm Wireless buys the assets of Uniden’s Private Radio Communications Division and “residual” assets of Midland International. Nextel Communications wants NextWave’s former spectrum.
Relm Wireless Having converted Relm Wireless from a “mini-conglomerate” into a focused land mobile radio manufacturer, company President Richard Laird is ready to market Uniden Private Radio Communications’ products, to contract for original equipment manufacturer (OEM) services from Uniden and Hitachi and to develop new mobile products. With an announcement pending at this writing, Relm is set to form an alliance with Hitachi involving two-way radio tooling and inventory housed at Hitachi.
Simmonds Capital Ltd. (SCL), headed by John Simmonds, is helping Relm with financing and strategic advice in exchange for some stock. SCL, which owns Midland International, sold Securicor Wireless its U.S. land mobile sales and distribution business. Simmonds later left Securicor Wireless’s board of directors and sold SCL’s shares in the then-public company. With the Relm transaction, Simmonds is back in Securicor Wireless’s face.
With SCL’s help, Relm may have an appetite for other acquisitions-maybe Securicor Wireless’s FM two-way radio sales and distribution business. And, as recently as October, SCL was prepared to help Datamarine International, known for its SEA 220MHz products, with financing and acquisitions.
Historical note: Relm, previously named Regency Electronics, once made two-way radios, scanners and electric utility load management equipment. Regency sold its scanner line and its name to-guess who?-Uniden America. The “Re” in “Relm” echoes “Regency”; “lm” stands for the since-divested “load management” products.
Ericsson Private Radio Systems Ericsson, the Stockholm-based wireless infrastructure and handset manufacturer, has sold its worldwide Private Radio Systems operations to Com-Net Ericsson Critical Communications (CECC), a newly renamed subsidiary of Pittsburgh-based Com-Net.
Com-Net will continue selling radio systems to organizations that want to own and operate them. But it sees more opportunity in financing, designing, building, operating and maintaining radio systems for shared use by government entities.
Com-Net’s business evolved from site, switch and control center construction, to tower ownership and management, to cellular and PCS network infrastructure management.
How CECC may change previous Ericsson relationships with suppliers, representatives, dealers, customers, trade associations, regulatory agencies and legislators offers plenty to watch.
Nextel Nextel Communications is moving fast and nimbly in its efforts to acquire spectrum for which NextWave bid $4.8 billion in 1996. After the auction, NextWave filed for bankruptcy protection.
Nextel has sought the spectrum since August 1999 when it cut a deal with the FCC, but it has had to contend with a reluctant bankruptcy court.
NextWave has secured $1.6 billion in funding from Global Crossing and Liberty Media and wants to emerge from bankruptcy protection.
Nextel said it would make an $8.3 billion hostile bid for NextWave. That would include $5.3 billion to the FCC and $3 billion for NextWave and its creditors.
The U.S. Second Circuit Court of Appeals issued an opinion supporting the FCC’s jurisdiction over the NextWave spectrum, telling the bankruptcy court to butt out, so Nextel withdrew its takeover bid.
Armed with the appellate court opinion, on Jan. 12, the FCC revoked NextWave’s license. NextWave is going to fight. It has served notice that it will litigate the FCC’s license revocation.
The FCC intends to re-auction the spectrum. Nextel not only is certain to bid, it might be the only large company able to bid, owing to spectrum caps onwireless carriers. Sound familiar? An auction in which Nextel has limited bidding competition?
Ray Maloney Ray Maloney, Intertec Publishing’s chairman, retired in January after 32 years with the company.
He started in 1967 as comptroller, advancing to vice president of finance; executive vice president; president and chief executive officer; and, finally, chairman.
Maybe you’ve met Maloney at International Wireless Communications Expo. Group Publisher Mercy Contreras and I first met him in November 1986 when he was part of the group helping to integrate MRT with Intertec following its acquisition from Wiesner Publishing that month.
Maloney’s keen business sense has helped the company to acquire and grow printed and Internet properties. His leadership helped to set the tone that makes the company such a satisfying place to work.
He was inducted into Intertec’s Presidential Hall of Fame in 1998.
We wish him the best in retirement.
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