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JPS Communications associate in talks with Raytheon to buy back company
Raytheon may have recently closed the JPS Communications business unit, but negotiations are underway to pursue the possibility of resurrecting JPS Communications as a standalone company, according to one of JPS Communications' founders.
2 Min Read
Raytheon may have recently closed the JPS Communications business unit, but negotiations are underway to pursue the possibility of resurrecting JPS Communications as a standalone company, according to one of the JPS Communications' founders.
“An individual closely associated in the past with JPS Communications is currently in negotiations with Raytheon to purchase the key assets of the company,” JPS Communications co-founder Don Scott stated in an e-mail to IWCE’s Urgent Communications. “Though he prefers not to give details on those negotiations, he understands there are many customers that are concerned.
“Everything possible is being done to move the process forward quickly to once again provide public safety solutions to these customers.”
Many LMR-industry sources were surprised by Raytheon’s decision to close the JPS unit, which was known for its interoperability solutions. Speculation that the company might be revitalized has been in the marketplace for at least a week.
Raytheon shut down the JPS Communications business unit on Jan. 29. At the time, Raytheon informed all dealers that their agreements had been cancelled, but any contracted JPS warranties and other obligations would be fulfilled.
At that time, a Raytheon spokesperson also provided the following statement to IWCE’s Urgent Communications.
“Raytheon consistently reviews its business portfolio to ensure we are providing and investing in the products and services needed by our customers and aligned with the company’s core areas of expertise. Since acquiring JPS, there have been market changes that no longer align with Raytheon’s core technology and business strategy.
“Employees of the business will be provided with severance packages according to standard company policy.”
During the late 1990s and early 2000s, JPS Communications’ ACU product family was among the most popular interoperability solutions of the era, purchased by many state and local first-responder agencies with federal grants made available before and after the events of 9/11. Raytheon purchased JPS Communications and continued to innovate its interoperability products.
