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WiMAX Spectrum Signal
Processing |
Vecima
Completes Purchase of Spectrum Signal Processing
Other topics: WiMAX Digital Display,
Mobile WiMAX Comparisons,
Germany WiMAX Deployment
Vecima
May 2, 2007
Victoria, British Columbia -- Vecima Networks Inc. (“Vecima”) is pleased
to announce that it has completed the acquisition of all of the issued
and outstanding common shares of Spectrum Signal Processing Inc.
(“Spectrum”) for a total purchase price of approximately $18.3 million,
made up of 820,000 Vecima shares and approximately $10.1 million in
cash. |
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The statutory plan of
arrangement (the “Arrangement”), announced on February 16, 2007,
involving Spectrum, its shareholders and Vecima, was approved by the
Supreme Court of British Columbia on April 27, 2007 and by the Committee
on Foreign Investments in the United States (CFIUS) on April 26, 2007.
More than 92% of Spectrum shareholders represented at its special
meeting held on April 20, 2007 voted to approve the Arrangement.
“Spectrum’s shareholder vote clearly demonstrated strong support in
favor of this Arrangement that fuses two powerful technological
portfolios to enhance our position and opportunities in the emerging
WiMAX market. The strategic fit of Spectrum’s compelling product
portfolio focused at the commercial and defense broadband wireless
markets advantageously positions Vecima to deliver the power and
security of software-defined radio technologies to the commercial
broadband wireless market,” stated Dr. Surinder Kumar, President and
Chief Executive of Vecima. “In addition, the Arrangement allows us to
bring Vecima’s portfolio of last-mile wireless solutions to Spectrum’s
current market.”
Both Spectrum’s and Vecima’s product portfolios are powered at their
core by field programmable gate array chips, digital signal processing
chips, and general purpose processors running software tailored to
broadband wireless communications.
In addition to the defense market, Vecima intends to target high growth
commercial markets such as the public safety, homeland security,
satellite communications, and broadband wireless markets which demand a
configurable software radio solution to enable the various agencies to
communicate in an interoperable manner.
“Vecima has a solid strategic plan to bring Spectrum’s financial results
into alignment with our historical profit model in the near term by
taking advantage of a single exchange listing and streamlining
administrative expenses through economies of scale,” said Dr. Kumar. “We
are pleased to see so many Spectrum shareholders elect to receive Vecima
shares and look forward to building upon Vecima’s track record of 19
consecutive years of profitability.”
Vecima reiterates its expectation that the acquisition will be
immediately accretive to revenues.
About Vecima Networks
Vecima Networks Inc. (TSX:VCM) designs, manufactures and sells products
that enable broadband access to cable, wireless and telephony networks.
Vecima's hardware products incorporate original embedded software to
meet the complex requirements of next-generation, high-speed digital
networks. Service providers use Vecima's solutions to deliver services
to a converging worldwide broadband market, including what are commonly
known as "triple play" (voice, video and data) and "quadruple play"
(voice, video, data and wireless) services. Vecima's solutions allow
service providers to rapidly and cost-effectively bridge the final
network segment that connects the system directly to end users, commonly
referred to as "the last mile", by overcoming the bottleneck resulting
from insufficient carrying capacity in legacy, last mile
infrastructures. Vecima's products are directed at three principal
markets: Data over Cable, Broadband Wireless and Digital Video. The
Company has also developed and continues to focus on developing products
to address emerging markets such as Voice over Internet Protocol, fiber
to the home and IP video. For more information on Vecima, please visit
www.vecimanetworks.com. |
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