Intek Diversified Corp. of Los Angeles has agreed to pay $30 million for two of NovAtel Communications Ltd.'s three divisions, including a Canadian molding/manufacturing facility in Calgary, Alberta. NovAtel switched its focus last year from injection molded plastics and light industrial manufacturing to concentrate on cellular telecommunications, according to information released by the company.
Assets to be purchased by Intek include the Wireless Access Products business unit, the Personal Communication Products business unit and a 120,000-square-foot manufacturing facility. Products include portable, three-channel, cellular-compatible systems, to full-feature, wireless systems capable of supporting more than 80,000 subscrib-ers, cellular and radio frequency products.
The Personal Communication unit has technology for wireless, digital 900-megahertz telephones, a technology with the capability to form the basis for personal communication services infrastructure and customer telephones for the emerging U.S. market.
Intek Chief Executive Officer John Simmonds said the acquisition provides the company with a ``state-of-the-art [radio frequency] manufacturing facility to produce the Roamer One subscriber 200-MHz radios, and to move some of the Midland [Radio] manufacturing to North America.''
Intek is in the midst of acquiring Midland Radio, which will be the major distribution arm for Intek. Midland currently is manufacturing its two-way radios offshore.
Intek controller Gregg Marston said the Calgary molding facility and manufacturing operations will be used to support Intek's product manufacturing. Marston said no details about the facility are available yet.
Earlier this year, Intek closed one of its subsidiaries, Olympic Plastics Co., sold off the assets and invested the proceeds in Roamer One, Intek's nationwide wireless telecommunications network.