Comarco acquires EDX Engineering

Test and measurement equipment and engineering services provider Comarco Inc. (Irvine, CA) has acquired EDX Engineering Inc. (Eugene, OR). EDX is a developer of system planning tools for the wireless communications industry including cellular, PCS, LMDS, MMDS, LMR/SMR, microcell and indoor systems and wireless local loop. Comarco plans to operate EDX as of division of Comarco Wireless Technologies Inc., the company's wireless subsidiary, and to retain the EDX name.

The EDX portfolio of products includes EDX SignalPro, a comprehensive software package offering a set of planning tools that includes multi-site coverage and interference analysis, multiple point-to-point link analysis, a comprehensive set of propagation models, full mapping capabilities and full access to terrain, groundcover, building, demographic, traffic and other databases.

"During the past 12 months, we have completed the divestiture of our non-wireless business units and, with the acquisition of this profitable company, are now positioned to further penetrate the extremely attractive wireless broadband market space,'' said Tom Franza, Comarco president and CEO. "The combination of EDX and COMARCO creates access to a new market segment and enables us to expand our offering of engineering services through participation in the planning and deployment phases of mobile and fixed wireless network implementation.''

The company acquired all the outstanding common stock of EDX for 257,428 shares of Comarco common stock and $2.1 million in cash. The merger transaction will be accounted for under the purchase method of accounting. The company expects to record a one-time charge for purchased in-process research and development expenses related to a portion of the purchase consideration in its fourth quarter ending Jan. 31, 2001.

"The vision and culture of Comarco and EDX are closely aligned, and we anticipate significant synergy in technology, market channels, and customer relationships. With Internet traffic doubling every three months, wireless technologies provide a cost-efficient means for rapid deployment of broadband data services,'' said Dr. Harry Anderson, EDX president.

Edited by Ellen Jensen
Managing Editor, Wireless Networks Online