EADS North America acquires PlantCML
ARLINGTON, VIRGINIA (April 22, 2008)– EADS today announced the acquisition of California-based PlantCML, a leading provider of emergency response solutions, from Golden Gate Capital, a San Francisco-based private equity fund, for approximately $350 million. Based on the underlying profitability of PlantCML, the acquisition is earnings per share (EPS) accretive (on a pre fair value amortization basis) in the first year. Leveraging the synergies between the companies is expected to create additional value in the future. The acquisition was made through EADS’ U.S. operating subsidiary, EADS North America, and will become part of the North America business portfolio.
PlantCML provides call management and radio dispatch products for emergency call centers, along with emergency notification services, Computer Aided Dispatch (CAD) applications and mapping services. PlantCML has the largest installed base of public safety answering points in the U.S.
Through its widespread market access, PlantCML will serve as a strong contributor in advancing EADS’ professional mobile radio (PMR) solutions into the rapidly expanding U.S. market. PlantCML will now have access to EADS’ worldwide operations, thereby increasing PlantCML’s global market opportunities while capitalizing on its current U.S. and Canadian growth, high margins and strong cash generation.
“Bringing PlantCML into our business portfolio further enhances EADS North America’s capabilities in ensuring the homeland security of the United States,” said Ralph D. Crosby, Jr., Chairman and CEO of EADS North America. “The resources of PlantCML are a perfect match with our growing homeland security and public safety activity, which already includes turnkey professional mobile radio systems and network security training.”
“With this acquisition, our group solidifies its position in security systems and solutions, while fulfilling our commitment to invest in our capabilities, and grow in the U.S. By so doing, we demonstrate both our intent and success in following the roadmap we have laid out for EADS in 2008 and beyond,” explained EADS CEO Louis Gallois.
“Integrating with EADS will bring added resources, capabilities and technologies to PlantCML, and more importantly, to our customers,” said PlantCML CEO Tim Fuller. “We remain focused on meeting our customers’ needs and providing the high value service and products they expect from PlantCML.”
Strengthened by the resources, technologies and products from EADS, PlantCML will continue to serve a broad base of private and public customers in its core competencies of wireless and emergency communications. Moreover, PlantCML will benefit from the PMR market access created by EADS Defence & Communications Systems, enabling PlantCML to sell its solutions outside of the U.S.
The acquisition further expands EADS’ industrial footprint in the U.S. and Canada, while positioning the company as a recognized prime contractor capable of meeting the demanding requirements of U.S. government agencies and public safety first responders.
PlantCML will further complement EADS’ global capabilities in delivering P25-based public safety and homeland security radio systems. EADS is the world’s second largest systems provider for public safety and mission critical interoperable communications solutions with more than 180 public networks in over 65 countries.
PlantCML has more than 600 employees and is headquartered in Temecula, California, with other U.S. operations in Tennessee, Indiana and Alabama, and a Canadian operation in Quebec. Its capabilities include radio dispatch, computer telephony integrated workstations, computer aided dispatch, records management, mobile data, digital logging recording, Voice over Internet Protocol, and next-generation 911 (NG911) emergency messaging solutions.
About EADS North America
EADS North America is the North American operations of EADS, the second largest aerospace and defense company in the world. As a leader in all sectors of defense and homeland security, EADS North America and its parent company, EADS, contribute over $10 billion to the U.S. economy annually and support more than 190,000 American jobs through its network of suppliers and services. Operating in 32 cities and 17 states, EADS North America offers a broad array of advanced solutions to its customers in the commercial, homeland security, aerospace and defense markets.
The company’s state-of-the-art solutions for public safety and homeland security requirements include the CORP25 turnkey P25 radio system for local, countywide, statewide and federal radio networks; and the CyberSecurity Network Training Simulator (CYNTRS) — a customized network security tool that trains operators to recognize and defend the most malicious cyber attacks.
For more information, visit www.eadsnorthamerica.com.
About Golden Gate Capital
Golden Gate Capital is a private equity firm with over $9.0 billion of capital under management dedicated to investing in change-intensive opportunities. The firm’s charter is to partner with world-class management teams to make equity investments in situations where there is a demonstrable opportunity to significantly enhance a company’s value.
For more information, visit www.goldengatecap.com.