CONTRACTS
Loral Space & CommunicationsAnnounced that its subsidiary, Space Systems/Loral, was selected to provide a high-capacity broadband satellite for ViaSat, Inc. ViaSat-1 is expected to be the world's highest-capacity broadband satellite. The satellite is planned for Telesat's 115 West longitude orbital slot.
The new spacecraft is scheduled to launch in 2011 and is expected to provide more than 15 years of service life. It employs SS/L's space-proven 1300 platform and highcapacity Ka-band spot beam technology in hopes of ultimately servicing more broadband users at faster data rates than any previous satellite. ViaSat-1 involves a collaborative effort between ViaSat, Loral, Telesat, and Eutelsat, which is working with ViaSat on the networking system.
NEC Corp. and Sumitomo Corp.Have signed a framework contract with Italian mobile-phone operator Wind for the supply of NEC's advanced point-to-point wireless access systems, dubbed PASOLINK NEO.
The Malibu Division of Communications & Power Industries, Inc. (CPI)Has been awarded a $5.6 million contract for telemetry antenna systems. The four-year, firm, fixed-price contract was awarded by the US Air Force, 96th Communication Group at Eglin Air Force Base, FL. CPI's Malibu Division has received approximately $1.7 million in initial funding for the 2008 activities under this contract. Essentially, CPI's Malibu Division will supply 5.0- and 7.3-meter telemetry antenna systems that utilize some existing antenna components from Eglin Air Force Base.
FRESH STARTS
Motorola, Inc.Announced that its subsidiary, MI, Inc., has successfully completed its tender offer to acquire a controlling interest in Vertex Standard Co. Ltd., a global provider of two-way radio communication solutions. The tender offer period expired on January 15 with approximately 5.4 million shares tendered and accepted. Following the settlement of the tender offer for approximately 12.0 billion Yen in cash and starting on January 22, Motorola will have a total ownership stake of approximately 78 percent of Vertex Standard on a fully diluted basis. Tokogiken Co. Ltd., a privately held Japanese company controlled by Vertex Standard's president and CEO Jun Hasegawa, will retain a 20-percent stake.
The joint venture is expected to expand and develop a comprehensive suite of products to address the rapidly growing demand for two-way radio solutions. Motorola is hoping to leverage Vertex Standard's strength in the amateur, marine, and airband (avionics) segments in order to create new business opportunities. In addition, Vertex Standard's solutions are highly complementary with Motorola's products, adding greater depth and breadth to Motorola's Government and Public Safety business. The venture also provides additional engineering talent for Motorola.
Spreadtrum Communications, Inc.Completed the acquisition of Quorum Systems, Inc., a San Diego-based fabless semiconductor company that specializes in the design of highly integrated CMOS RF transceivers. On November 18, 2007, China-based Spreadtrum announced that it signed a definitive agreement to acquire Quorum for $55 million in cash and $15 million in stock with up to an additional $6 million in cash for performance-based earn-outs expected to be achieved within two years after the close of the transaction.
Spreadtrum expects the combined entity to provide a more competitive and complete wireless platform, thereby giving it more design flexibility while expanding the company's addressable markets. With the acquisition of Quorum, Spreadtrum gains a highly skilled radio-frequency engineering team of 30 engineers with an average of 10 years of industry experience.
DatamarsIs celebrating its 20-year anniversary. This company is known for developing identification solutions based on radio-frequency-identification (RFID) tags, readers, and antennas. Aside from developing, designing, and manufacturing all the components, Datamars offers software, consulting, and integration services. Although the company has established a strong position as solution provider in the companion animal identification and rental textile tracking segments, it is hoping to expand further.
VerigySigned an agreement to acquire Inovys. Invovys, which is privately held, provides solutions for design debug, failure analysis, and yield acceleration for complex semiconductor devices and processes. In contrast, Verigy designs, develops, manufactures, sells, and services test systems and solutions for the memory and SoC segments of the semiconductor industry. When the Inovys tools are combined with Verigy's V93000 system-on-a-chip (SoC) test platform, recent customer experience has shown sizable economic benefits.
Northrop Grumman Corp.Announced that its board of directors has authorized a program to repurchase up to $2.5 billion of its outstanding common stock, which represents more than 9 percent of the company's current market capitalization. As of Nov. 30, 2007, Northrop Grumman had approximately 338 million shares outstanding. Including the $2.5 billion authorization, the company has authorized the repurchase of $6.7 billion of its common stock since 2003 and has completed the repurchase of approximately 69 million shares for $4.2 billion.
In addition, Northrop Grumman announced a strategic realignment of several of its operating sectors to enhance customer support, better utilize company capabilities and resources, and drive operating improvements. The two shipbuilding sectors, Newport News and Ship Systems, were realigned into a single sector called Northrop Grumman Shipbuilding effective Jan. 28, 2008. The company also is realigning the reporting of its missiles business from its Mission Systems sector to its Space Technology sector effective July 1, 2008. With this new reporting structure, Mission Systems will focus on the rapidly growing C4ISR business while the missiles business will be an integrated element of the company's Aerospace business growth strategy.