Calgary, Canada: NovAtel Inc, a Nasdaq listed entity, and a Calgary-based provider of global navigation satellite technology, will be acquired by one of its key customers, Hexagon AB of Sweden, for $50 per share, or $390 million in a friendly deal.
Headquartered in Calgary, Alberta, Canada, NovAtel Inc. is a publicly traded company on the Nasdaq Global Select Market and is a leading provider of precise GPS systems (global positioning systems), augmentation components, GPS tracking devices, and GPS navigation.
NovAtel said the friendly deal follows up on a long-standing partnership that it has had with Hexagon''s subsidiary, Leica Geosystems, which is focused on the development of high-precision satellite system technologies. NovAtel has been a core supplier of equipment and systems to Leica Geosystems since 2002.
In a statement, Hexagon and NovAtel said the combination of the two companies will add new applications to the Hexagon product portfolio and give the Swedish company access to technologies in new high-growth areas in the market for global navigation satellite systems (GNSS).
"We are pleased that Hexagon has recognized NovAtel''s value and selected us to play a key role in their GNSS strategy, as it acknowledges NovAtel''s leading GNSS technology, focused (original equipment manufacturer) strategy, and profitable growth over the past five years," Jon Ladd, president and CEO of NovAtel, said in a release.
NovAtel makes GNSS components and subsystems such as receivers, enclosures, antennas and firmware that are integrated into high-precision positioning applications worldwide.
NovAtel''s receivers are also at the core of national aviation ground networks in the United States, Japan, Europe, China and India, said the company. With 300 employees NovAtel generated sales of C$77.6 million and net profits of C$21.5 million in 2006.
The agreement has been approved by NovAtel''s board and is backed by NovAtel''s senior management, the companies said.