EXHIBIT 99.1
[on CalAmp letterhead]
FOR IMMEDIATE RELEASE
CalAmp Announces Agreement to Acquire
SmartLink Radio Networks
Acquisition Expands CalAmp's Addressable Market of
Public Safety Mobile Communication Infrastructure
OXNARD, CA, March 27, 2007 - CalAmp Corp. (Nasdaq: CAMP), a leading provider
of wireless communication solutions, announced today that it has entered a
definitive agreement to acquire SmartLink Radio Networks, a privately-held
company that provides proprietary interoperable radio communications
platforms and integration services for public safety and critical
infrastructure needs. Based on a software defined switch, SmartLink's
platform provides interoperability without the need to replace the installed
base of land mobile radios.
"I am pleased to announce the agreement to acquire SmartLink, which
represents another step forward in our strategy to build a significant
business in the growing public safety communications marketplace," said Fred
Sturm, President and Chief Executive Officer of CalAmp. "This acquisition
further enhances CalAmp's competitive position with a public safety voice
network solution that can be marketed through our existing channels. With
over 90 worldwide installations, SmartLink has a proven product that is well
positioned to benefit from the growing demand for cost effective
interoperable mobile communication systems. CalAmp's Dataradio operation will
provide the sales, integration engineering and operations infrastructure
needed to scale the SmartLink business. We believe that the addition of
SmartLink will improve CalAmp's overall competitive position by addressing
both the data and voice communications requirements of our customers."
SmartLink generated unaudited revenues of approximately $2.3 million during
the trailing 12 month period ended February 28, 2007. SmartLink is currently
in the process of deploying its platform for several important customers
including Solano County, Calif., the U.S. Department of Justice in San
Francisco and Grand Bahama Power Company. Depending on the size and scope of
a deployment, a SmartLink system sale generates revenues in the range of one
hundred thousand dollars to several million dollars. CalAmp expects
significant revenue growth for the Smartlink business during the next 12
months based on the current backlog of approximately $3.5 million and
additional expected near-term deployments.
Under terms of the agreement, CalAmp will pay the sellers $8.1 million cash
and will acquire certain assets and assume certain liabilities of SmartLink.
CalAmp will transition SmartLink's operations in Wallingford, Connecticut to
its Dataradio facilities in Montreal, Canada and Atlanta, Georgia over the
next several months. The acquisition is expected to be accretive to CalAmp in
the first year after excluding amortization of intangible assets and a one
time charge for In Process R&D arising from the acquisition. The transaction
is subject to customary closing conditions and is expected to be completed
within the next several weeks.
About CalAmp Corp.
CalAmp is a leading provider of wireless communications products that enable
anytime/anywhere access to critical information, data and entertainment
content. With comprehensive capabilities ranging from product design and
development through volume production, CalAmp delivers cost-effective high
quality solutions to a broad array of customers and end markets. CalAmp is
the leading supplier of Direct Broadcast Satellite (DBS) outdoor customer
premise equipment to the U.S. satellite television market. The Company also
provides wireless data communication solutions for the telemetry and asset
tracking markets, private wireless networks, public safety communications and
critical infrastructure and process control applications. For additional
information, please visit the Company's website at www.calamp.com.
About SmartLink Radio Networks Inc.
SmartLink is a privately held technology company headquartered in
Wallingford, Connecticut. SmartLink designs, develops and manufactures
interoperable radio communications platforms for use in public
safety/service, critical infrastructure and commercial applications.
SmartLink has deployed over 90 systems worldwide, including numerous mission
critical radio systems for domestic and international police and governmental
security forces and power utilities. SmartLink's software-defined network
breaks down the barriers created by different radio frequencies and
protocols, seamlessly integrating with legacy equipment. The result is a
cost-effective and flexible networked radio environment that delivers
interoperability, while allowing customers to easily adapt and expand to
future technologies. For more information, please visit the SmartLink website
at www.smrlink.com.
Forward-Looking Statement
Statements in this press release that are not historical in nature are
forward-looking statements, which involve known and unknown risks and
uncertainties. Words such as "may", "will", "expect", "intend", "plan",
"believe", "seek", "could", "estimate", "judgment", "targeting", "should",
and variations of these words and similar expressions, are intended to
identify forward-looking statements. Actual results could differ materially
from those implied by such forward-looking statements due to a variety of
factors, including general and industry economic conditions, competition, the
timing of customer approvals of new product designs, operating costs, the
Company's ability to efficiently and cost-effectively integrate its acquired
businesses, and other risks and uncertainties that are detailed from time to
time in the Company's filings with the Securities and Exchange Commission.
Although the Company believes the expectations reflected in such forward-
looking statements are based upon reasonable assumptions, it can give no
assurance that its expectations will be attained. The Company undertakes no
obligation to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
AT THE COMPANY: AT FINANCIAL RELATIONS BOARD:
Rick Vitelle Lasse Glassen
Chief Financial Officer General Information
(805) 987-9000 (310) 854-8313
lglassen@frbir.com