PCTEL Announces Asset Acquisition of Dynamic Telecommunications Inc.; Company
Continues Transition to Wireless Future
CHICAGO--(BUSINESS WIRE)--March 12, 2003--PCTEL, Inc. (Nasdaq:
HREF="aol://4785:PCTI">PCTI), a leading provider of Internet access
products and wireless mobility software, announced today its acquisition of
Dynamic Telecommunications Inc. (DTI), a leader in software-defined radio
technology. DTI's software-defined radios are used in the optimization and
planning of wireless networks as well as being utilized in a variety of
communications security applications. In 2002, DTI's software-defined radio
revenue was $8.4 million and related earnings before taxes were $1.7 million.
The company was acquired for an initial purchase price of $10 million in
cash, with additional consideration available for future earnings improvement.
"We are extremely excited that DTI is joining the PCTEL team," said Marty
Singer, PCTEL's Chairman and CEO. "Paul Kline and Larry Swift have led an
incredible technical team for almost a decade, successfully taking on the
giants in the wireless optimization market. We believe DTI's technology, when
applied to WLAN's will help usher in a wave of activity to improve the
efficiency of these networks. We also anticipate security-related
applications for their software-defined radio technology," added Singer.
DTI, located in Germantown, Maryland, designs and manufactures communication
equipment that supports the deployment, maintenance and optimization of
global wireless infrastructure. The company's software radio technology is
deployed in high-speed wireless scanning receivers, multi-protocol collection
and analysis systems, interference measurement systems and sophisticated
Radio Frequency (RF) command and control software solutions. The company's
DSP and RF based technology is being used for a variety of applications in
the cellular, Personal Communication Services (PCS) and wireless broadband
marketplaces.
DTI currently holds a major share of the market in the OEM segment of its
business. The company supplies leading wireless network operators, wireless
infrastructure suppliers, and wireless test & measurement solution providers
with receivers for their network optimization equipment.
The company also applies its technology in markets that require RF systems
solutions, such as multi-protocol RF collection and analysis, base station
sniffing receivers, base station monitoring equipment, military, government
and law enforcement surveillance tools. Through additional contracts with
major wireless players as well as various government contractors, DTI is
expanding the scope of its technology beyond its traditional test equipment
base and into other emerging applications for wireless communications,
including Wi-Fi (802.11) and security related matters.
"We worked with the PCTEL management team when they grew SAFCO Technologies
into a leading wireless management company," remarked Paul Kline, DTI's CEO
and co-founder. "We believe that joining PCTEL represents a great opportunity
to grow our core businesses as well as enter the high growth Wi-Fi market."
DTI's products include the SeeGull(TM) line of scanning receiver products for
all standard cellular protocols and the ClaRiFy(TM) spectrum and interference
management system. DTI's product portfolio also includes a multimode system
for competitive analysis and spectrum management, and transmitters used in
government as well as test and measurement applications.
PCTEL first announced its intention to pursue wireless access business
opportunities in early 2002 and acquired the assets of a Chicago-based WLAN
software company in June 2002. That acquisition led to the development of its
Segue(TM) Wi-Fi product line which now includes a Wireless Roaming Client,
Network Gateway and Network Controller. PCTEL now has approximately half of
its 127 employees devoted to wireless products and technology.
Robert W. Baird & Co. served as financial advisor to PCTEL.
About PCTEL
PCTEL, founded in March 1994, is a leading provider of innovative and
cost-effective Internet access solutions. PCTEL's products include analog
soft modems, DSP-based modems and WLAN software products (Segue(TM) product
line) that simplify installation, roaming, Internet access and billing. The
company maintains a portfolio of more than 80 analog and broadband
communications and wireless patents, issued or pending, including key and
essential patents for modem technology. The company's products are sold to PC
manufacturers, PC board and card manufacturers, wireless carriers, wireless
ISPs, software distributors, and system integrators. PCTEL headquarters are
located at 8725 West Higgins Road, Suite 400, Chicago, IL 60631. Telephone:
773-243-3000. For more information, please visit our web site at:
http://www.pctel.com.