- Acquisition Brings Unmatched Digital Signal Processing Expertise, Patented Portfolio of Algorithms to Enable Development of High-Performance Communications Products and Licensing Revenue Stream -
DALLAS, April 14, 2021 /PRNewswire/ -- COMSovereign Holding Corp. (NASDAQ: COMS) ("COMSovereign" or "Company"), a U.S.-based developer of 4G LTE Advanced and 5G Communication Systems and Solutions, today announced that it is acquiring Innovation Digital, LLC ("Innovation Digital"), a premier developer of "beyond state-of-the-art" mixed analog/digital signal processing solutions, intellectual property (IP) licensing, design and consulting services.
Innovation Digital's signal processing techniques and IP have significantly enhanced the bandwidth and accuracy of RF transceiver systems and have provided enabling technologies in the fields of communications and RADAR systems, signals intelligence (SIGINT) and electronic warfare (EW), test and measurement systems, and semiconductor devices.
Terms of the transaction include total consideration of $8 million consisting of $1.6 million in cash and convertible debt and $6.4 million worth of shares of restricted common stock. The transaction is expected to close within approximately 10 days subject to traditional closing conditions. Following the close of the transaction, Dr. Scott Velasquez will assume the role of Chief Research Officer for COMSovereign including the oversight and management of the Lextrum, VEO and Innovation Digital business units.
- The firm provides intellectual property licensing, design and consulting services supporting the implementation of advanced digital system technologies and services for extremely high-performance communications, RADAR, and integrated component applications. Clients include multiple U.S. defense contractors such as General Dynamics, Raytheon, L3Harris and various U.S Department of Defense agencies including The Naval Surface Warfare Center, the Missile Defense Agency, the Air Force Research Laboratory and DARPA.
- The accretive acquisition of Innovative Digital is expected to contribute approximately $3 million in net revenue from licensing this year from committed customers.
- Innovation Digital holds 21 issued and several pending United States Patents. As part of COMSovereign, its valuable IP and expertise will further advance the performance capabilities of the Company's entire range of next-gen radio products that will set a new standard for throughput and efficiency.
- Innovation Digital was founded by Dr. Scott Velazquez, who holds four degrees from MIT including a Ph.D. in Electrical Engineering. Scott is considered the pioneer, and still one of the foremost experts in mixed analog/digital signal processing technology.
"Innovation Digital's engineers are among the top experts in signal efficiency and waveform engineering and aligns with our strategy of building and maintaining our technological leadership and capabilities through either organic means or via acquisition. Their addition to our team will accelerate the integration of both Lextrum's In-Band-Full-Duplex and the licensed Transpositional Modulation technologies into our next generation 'Polaris' 5G radio products, resulting in dramatic improvements in product performance and expanding our unique features and capabilities," said Dr. Dustin McIntire, CTO of COMSovereign.
For more information about COMSovereign, please visit www.COMSovereign.com and connect with us on Facebook and Twitter.
About COMSovereign Holding Corp.
COMSovereign Holding Corp. (Nasdaq: COMS) has assembled a portfolio of communications technology companies that enhance connectivity across the entire data transmission spectrum. Through strategic acquisitions and organic research and development efforts, COMSovereign has become a U.S.-based communications provider able to provide 4G LTE Advanced and 5G-NR telecom solutions to network operators and enterprises. For more information about COMSovereign, please visit www.COMSovereign.com.
Certain statements in this press release that are not historical facts are forward-looking statements that reflect management's current expectations, assumptions, and estimates of future performance and economic conditions, and involve risks and uncertainties that could cause actual results to differ materially from those anticipated by the statements made herein. Forward-looking statements are generally identifiable by the use of forward-looking terminology such as "believe," "expects," "may," "looks to," "will," "should," "plan," "intend," "on condition," "target," "see," "potential," "estimates," "preliminary," or "anticipates" or the negative thereof or comparable terminology, or by discussion of strategy or goals or other future events, circumstances, or effects. Moreover, forward-looking statements in this release include, but are not limited to, the impact of the current COVID-19 pandemic, which may limit access to the Company's facilities, customers, management, support staff, and professional advisors, and to develop and deliver advanced voice and data communications systems, demand for the Company's products and services, economic conditions in the U.S. and worldwide, and the Company's ability to recruit and retain management, technical, and sales personnel. Further information relating to factors that may impact the Company's results and forward-looking statements are disclosed in the Company's filings with the SEC. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company disclaims any intention or obligation, other than imposed by law, to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Steve Gersten, Director of Investor Relations
COMSovereign Holding Corp.
External Investor Relations:
Chris Tyson, Executive Vice President
MZ Group - MZ North America
Media Relations for COMSovereign Holding Corp.:
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SOURCE COMSovereign Holding Corp.