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EMS Technologies Sells Satellite Networks Division to Advantech AMT |
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ATLANTA and MONTREAL, Dec. 23, 2005/Satnews Daily/ — EMS Technologies, Inc. (Nasdaq: ELMG) said on Thursday it is selling its Satellite Networks (SatNet) division to Advantech Advanced Microwave Technologies Inc., a manufacturer of satellite and terrestrial wireless communication equipment, with corporate headquarters in Montreal, Canada.
The company also announced that it anticipates an additional impairment charge during the fourth quarter of approximately $2.5 million on the assets being sold. It said it may also recognize additional losses through discontinued operations arising from the SatNet division’s operations during the fourth quarter.
Alfred G. Hansen, president and CEO, said Satellite Networks has been a pioneer in the DVB-RCS arena and will bring a deep technology base to Advantech in the growing arena of satellite broadband communications.
“While I believe its operations have a bright long-term future in the hands of Advantech, it remains a small start-up venture whose orders stream is difficult to predict.” He said continued delays in orders, and resulting continuing losses and cash funding requirements, during the fourth quarter underscore that EMS and its shareholders are better served by a sale to a company like Advantech, which can integrate SatNet with other complementary product lines and technologies and enable its success.
The two companies said they are seeking to close the transaction as soon as possible, subject to obtaining certain customer and supplier consents.
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