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TeleCommunication Systems Acquires NG9-1-1 Technology Leader, microDATA GIS
Transaction Bolsters TCS' Public Safety Communications Solution Set and Distribution
TeleCommunication Systems, Inc. (TCS), a world leader in highly reliable and secure mobile communication technology, has acquired privately-held microDATA GIS, Inc., a leading provider of Next Generation 9-1-1 (NG9-1-1) software and solutions.
The aggregate acquisition consideration is approximately $37 million, comprised of $20 million in cash at closing, plus $14 million in promissory notes and performance-based earn-out opportunities.
microDATA's technology and expertise expands TCS' end-to-end public safety communication solutions in several ways. As a pioneer in Geographical Information Systems (GIS), microDATA has a mature GIS product and tools suite, comprehensive training programs and large, highly scalable GIS data gathering and consolidation capabilities.
These capabilities are key to the business, because NG9-1-1 solutions require a detailed and comprehensive GIS data set in order to operate. microDATA also adds a comprehensive suite of Public Safety Answering Point (PSAP)-based customer premise equipment, including computer-aided dispatch integration, dashboards and call management products to the TCS suite of solutions. microDATA's three channel alliances with CenturyLink, a second large nationwide operator, and regional operator Cincinnati Bell – all industry leaders in public safety communications – enhance distribution for TCS' public safety solutions. microDATA's market position and history of accomplishments has grown steadily since its inception in 1983 and complements TCS' history of serving the public safety community, including its recent SMS911 and mobile alert solutions.
Bruce Heinrich, founder of microDATA, said: "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."
"The E9-1-1 business is a foundation stone of our Commercial segment, providing us with stable, growing and recurring revenue and cash flow," said Maurice B. Tose, TCS chairman and CEO. "We know that this business, and particularly Next Generation 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. 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."
microDATA executive Christine Heinrich will lead the newly constituted and TCS wholly-owned subsidiary as vice president of NG9-1-1. microDATA executive Jason Heinrich will become vice president of NG9-1-1 product development. Both will report to Chris Nabinger, senior vice president of TCS' Safety and Security Group.
For more information on microDATA, visit www.md-911.com
- Corporate News/9-1-1magazine.com (via TeleCommunication Systems, 7/6/12)