PCTEL acquires Ascom's scanning receiver business

Jan 4, 2010
Ascom sells its scanning receiver business for USD 4.5 million to the US Company PCTEL. This transaction strengthens the core businesses of both companies. PCTEL will integrate and maintain Ascom's Scanning Receiver.

PCTEL (NASDAQ: PCTI) and Ascom announced today that PCTEL had acquired all of the assets related to the Ascom scanning receiver business. This business was a small part of Comarco's Wireless Test Solutions (WTS), a business that Ascom acquired end of 2008. Under the agreement, PCTEL will continue to supply both PCTEL and WTS scanning receivers to the newly formed Ascom Network Testing Division that consolidated the testing businesses for mobile telecom carriers of Ascom.

PCTEL will pay USD 4.5 million for the scanning receiver business, whereof USD 0.2 million will be due based on an earn-out clause. The consideration includes the acquisition of the assets and the assumption of warranty obligations.

"PCTEL views this as a win-win for our two companies," says Marty Singer, PCTEL's Chairman and CEO. "We will continue to do what we do best: design, develop, and support best-in-class scanning receivers for the wireless industry and Ascom's Network Testing Division will focus its resources on providing operators worldwide with leading-edge test and measurement products and world-class support," added Singer.

"The PCTEL scanning receiver has been a relevant element of the TEMS product portfolio and the ex-Comarco WTS scanning receivers have been an integral element of our benchmarking solution for the US market" says Riet Cadonau, CEO of Ascom.

"We concluded that we could also entirely maintain our benchmarking customer commitments while relying upon PCTEL to manage the development and delivery of the scanning receiver technology. Importantly, this divestiture sharpens our focus on what we do best, after we have defined the combined product portfolio of the new Ascom division Network Testing, to meet our customers' needs the best," adds Cadonau.


ABOUT ASCOM
Ascom is an international solution provider with comprehensive technological know-how in Mission-Critical Communication. The company concentrates on core areas as Wireless Solutions (high-value, customer-specific on-site communications solutions), Security Solutions (applications for security, communication and control systems for infrastructure operators, public security institutions and the army) and TEMS (a global market leader in optimization solutions for mobile networks). The company has subsidiaries in 19 countries and a workforce of some 2,300 employees worldwide. Ascom registered shares (symbol ASCN) are listed on the SIX Swiss Exchange in Zurich.

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This document does not constitute an offer or solicitation to subscribe for, purchase or sell any securities. This document is not being issued in the United States of America or the United Kingdom and should not be distributed in any jurisdiction in a manner where such distribution would not comply with regulatory requirements. In particular, this document may not be distributed into the United States, to United States persons or to publications with a general circulation in the United States. In addition, the securities of Ascom have not been and will not be registered in any jurisdiction outside Switzerland. The securities of Ascom may not be offered, sold or delivered and no solicitation to purchase such securities may be made within the United States or to U.S. persons absent an applicable exemption from the registration requirements of the United States securities laws or within any other jurisdiction and in a manner where such offer, sale, delivery or solicitation might not be in compliance with regulatory requirements (including the United Kingdom).