Com-Net Critical Communications Acquires Ericsson Private Radio Systems

In a move that will allow it to follow its strategy and concentrate on the convergence of mobility and the Internet, Ericsson, Inc. has sold its Lynchburg, VA-based Private Radio Systems (PRS) operations to Pittsburgh, PA-based Com-Net Critical Communications. Com-Net is a provider of radio network solutions to the public safety and service market. The PRS business employs more than 700 people and operates through a worldwide network of dealers and distributors. The division had approximately $300 million of sales in 1999.

The sale of the PRS division will bring an increased focus on the private radio market by Com-Net and allow Ericsson to concentrate its resources on the attainment of its short and long-term goals to achieve a market-defining role for the mobile Internet.

To provide continuity throughout the transition for both employees and customers, Ericsson will maintain an equity ownership in the new company, which will be named Com-Net Ericsson Critical Radio Systems. It will assume Ericsson PRS customer commitments and long-term servicing of current customers that own and operate PRS two-way communications systems and products. The new company will continue to serve the global market with critical communications systems.

"The acquisition of Ericsson's PRS operations manifests our strategy to become a vertically integrated provider of services to the wireless market," said Steve Savor, Com-Net's CEO. "We now have the ability to offer our customers a complete range of alternatives and solutions."

Private Radio Systems' Enhanced Digital Access Communications System (EDACS) serves more than 450 public safety, utility, industrial, commercial, and government organizations worldwide, including the Kremlin in Russia, the French Naval Fleet, American Electric Power, the Denver International Airport, and Miami-Dade County, FL.

Com-Net's current business includes the construction and/or purchase of wireless networks and systems capable of providing secure and reliable two-way radio communications. With the addition of the PRS product portfolio, Com-Net will be in the position to offer total communications to the land mobile radio market.

Edited by Ellen Jensen