DALLAS, TX, RF Monolithics Inc. (RFM) announced major steps toward becoming a comprehensive wireless solutions leader with the signing of definitive agreements for the acquisition of Cirronet Inc., a wireless data communications and networking company, and Caver-Morehead Systems Inc., which offers computerized maintenance management system (CMMS) software. RFM will offer a comprehensive suite of hardware, protocols, software, and related services necessary to enable customers to readily implement and deploy value added applications and smart services in their operations.
The Cirronet acquisition is valued at approximately $24.0 million in cash and stock, including approximately $4.8 million subject to the attainment of performance goals after closing. The Caver-Morehead acquisition is valued at approximately $4 million, all cash, including up to $2 million subject to earn out. Both Cirronet and Caver-Morehead are privately held. In the year ending December 31, 2005, Cirronet and Caver-Morehead had sales of $10.4 million and $1.7 million, respectively. RFM expects these two acquisitions to contribute from $14 million to $16 million of combined sales for RFM's fiscal year 2007, which ends August 31, 2007).
David M. Kirk, president and CEO of RFM, said "Connection of all manner of machines and processes through the Internet, frequently referred to as machine-to-machine networking, is a transformation to the pervasive Internet. We believe the combination of RFM's proprietary low-power short-range radio technology and Cirronet's products—incorporating proprietary, Bluetooth, and ZigBee technology—plus Caver-Morehead's sophisticated asset management application software platform provide RFM a unique capability to provide customers end-to-end pervasive Internet solutions. RFM will offer the broadest range of radios, modules, and protocols in the industry and, to our knowledge, no one else combines such a broad line of wireless offerings with a value-added application and services platform."
Robert M. Gemmell, president and CEO of Cirronet, said, "The pervasive Internet is moving beyond experimentation and is now entering a phase of rapid adoption. The strategic vision alignment between RFM and Cirronet and fully complementary product lines positions us to take full advantage of this opportunity. Our shareholders believe this merger gives Cirronet access to the resources and distribution system necessary to continue its market leadership and position the combined companies as one of the dominant participants in the wireless-devices segment of the pervasive Internet market." Upon completion of the merger, Mr. Gemmell will become an executive of RFM.
William F. Caver, president of Caver-Morehead, commented, "The emergence of practical wireless sensor and control systems provides a unique opportunity for forward-thinking CMMS companies to expand beyond their traditional machine-maintenance focus into the broader market for asset management. The field-proven maturity and stability of our software platform gives us a significant advantage over new entrants in the pervasive Internet space. We believe that the addition of Cirronet's and RFM's wireless sensor network solutions and industrial market presence dramatically extends the utility and value of our platform in our traditional markets while opening it to entirely new markets." Upon completion of the merger, Mr. Caver will become president of Aleier, Inc., a RFM subsidiary, which will acquire substantially all of Caver-Morehead's assets.
Celebrating over 25 years of providing low-power wireless solutions, RFM, headquartered in Dallas, TX, is enabling the next generation of wireless applications with a solutions-driven, technology-enabled approach to wireless connectivity. RFM provides the connections to extend the edge of the Internet to communicate with the billions of unconnected machines through a broad range of low-power wireless solutions—from comprehensive industrial wireless sensor networks to high-performance RF components. For more information on RF Monolithics Inc., please visit the company's primary Web site or its secondary Web site.
Based in Atlanta, GA, Cirronet supplies wireless modules and box products for the industrial market to device OEM manufacturers, integrators, and end users. Its products enable customers to wirelessly monitor and control electronic devices. Cirronet's longer range and higher data-rate products will complement RFM's low-power modules, which record data at individual machines and connect them to the Internet. Its OEM modules are incorporated into custom wireless solutions ranging from portable heart monitors to overhead crane controls, and its industrial box products provide wireless connections in harsh industrial environments. Cirronet's products operate in the license-free 900 MHz, 2.4 GHz, and 5.8 GHz ISM bands. For more information regarding Cirronet's products and services, please visit Cirronet's Web site.
With offices in Plano, TX, Caver-Morehead's CMMS software package has been deployed for over a decade in municipal, state, and federal government agencies and businesses for applications including fixed asset tracking and building automation and electronics control monitoring. Caver-Morehead software provides customers the ability to use and manage the data they now have available, which can be collected via either a wired or wireless data collection infrastructure. Its architecture and features make it an ideal platform for developing asset management and optimization applications seen as a key opportunity within the pervasive Internet space. For more information regarding Caver-Morehead's products and services, please visit Caver-Morehead's Web site.