ROW Short Takes

U.S. firm pays $7.2 million for CSI’s vehicle tracking deviceU.S.-based InterTrak Tracking Services LLC has paid $7.2 million for Calgary-based CSI Wireless Inc’s vehicle tracking device called AssetVision(TM ) for MicroBurst(R). The order will be delivered over the next year, with shipments beginning immediately. Introduced in October 2000, AssetVision(TM ) for MicroBurst(R) can locate and monitor vehicles, either individually or in fleets, almost anywhere in the United States, Canada and Mexico, and in some parts of South America. The device integrates Global Positioning System (GPS) technology with MicroBurst wireless packet data communications. Acquisition gives SiGEM 30% of global marketPending regulatory approval, Ottawa-based SiGEM Inc will acquire U.K.-based Auriga Communications Ltd for $4.9 million in cash and 2.25 million SiGEM shares, valued at about $9 million. The deal is expected to close in mid-February. Auriga is a private company with annual revenues of about $12.3 million that provides computerized fleet management and communication solutions for the public transportation industry. The acquisition will provide SiGEM with the infrastructure to grow its telematics business in Europe. It will also give it 30% of the global market in fleet management systems to the taxi and private hire industry.SiGEM goes downhill skiingThe antennas of Ottawa-based SiGEM Inc were implanted in the helmets of downhill skiers during training for a World Cup race in Switzerland on Jan. 13. Video and GPS signals were merged in a television broadcast to show the skier’s position and velocity during the run. Bad weather that forced the cancellation of some races and limiting the experiment to one run by former Swiss national ski team member Xavier Gigandet. "For that (run) everything worked fine and we ended up with nice data (video of the descent showing the instantaneous heart rate of the skier and the different GPS derived position and velocity)…," Dr. Jan Skaloud reported from Switzerland. The Swiss ski team hopes to combine video with GPS technology to figure out how to improve their times.NB government gives COM DEV a helping handThe New Brunswick government is giving COM DEV Wireless $1.15 million to assist in the expansion of its Moncton manufacturing facility. The government money will be used to hire and train 200 new employees. COM DEV International Ltd says the new jobs are necessary as it strives to meet the growing demand for third generation digital cellular systems now being installed in Europe. The company also said that COM DEV subscribers in Moncton would soon have high-speed access to Internet web pages and email from a new generation of cellular phones. RoyNat and Covington invest US$3 million in DavinciRoyNat Capital and Covington Fund II Inc have invested US$3 million in Davinci Technologies Inc to allow the provider of wireless and Internet software to accelerate its sales and marketing initiatives in North America and Europe, and to increase funding in research and development. RoyNat, which specializes in term financing and merchant banking services, has provided funds to Canadian businesses for 35 years, and Covington is an Ontario-based venture capital firm.MIPPS offers combined DSL, wireless servicesIn partnership with Toronto-based DSL provider Rhythms Canada Inc, MIPPS Inc is providing a new bundled service that combines DSL and wireless services to businesses. MIPPS says its wireless high-speed Internet access will be 125 times faster than traditional dial-up modems coupled with wireless LAN technology. The DSL technology will enable the Internet access to be carried on ordinary copper telephone wires already connected to most commercial and residential buildings.Telefonica Mundo selects SuperFlexTelefonica CTC subsidiary of Chilean Telefonica Mundo has chosen International Datacasting Corp’s SuperFlex broadband satellite datacasting system for its new broadband distribution service. Bell invests $100 million in expansion of PCS coverageBell Mobility is investing $100 million to expand its CDMA network to about 95 per cent of the population within Ontario and Quebec. In conjunction with Nortel Networks, Bell began constructing this month the expanded network, which will operate on the 800 and 1900 MHz bands. Bell also announced partnerships with Sierra Wireless, which will supply the AirCard 510, a Type II CDMA PC card modem, for sale at Bell stores in Ontario and Quebec. In another deal with Bell, PacketVideo Corp will launch Canada’s first market trial of wireless multimedia services on its CDMA network.Mitec Telecom loses business from Nortel NetworksMontreal-based Mitec Telecom Inc has had to cut its backorder log due to a decrease in demand for its products from Nortel Networks Corp, Brampton ON. The company indicated that its backlog order has been reduced by $6 million down to $23 million. Nortel had placed the original order in November 1999 for wireless filters and amplifier subsystems and was expected to generate about $14 million over an 18-month period. While Mitec is taking a hit from this reduction, it announced that it had secured an additional order from a major network provider for about $7 million. The reduction in revenue won’t be accounted for until next fiscal year. TMI and Motient create mobile satellite companyBCE Inc subsidiary, TMI Communications, and Motient Corp are joining forces to create a new North American mobile satellite services provider. The formation of the company was also accompanied by a US$50 million investment from Columbia Capital, Spectrum Equity Investors and Telcom Ventures LLC. The new venture, appropriately called Mobile Satellite Ventures, will focus on the development of wholesale distribution through key service providers. It will also bring together the resources necessary to create the next generation of mobile satellite. The new system will use a highly innovative and spectrum-efficient combination satellite of spot beams and fill-in terrestrial base stations. Before the deal can close, it has to pass regulatory hurdles in both the United States and Canada. Cell-Loc increases size of offering from $9 million to $20 millionCalgary-based location-based services provider Cell-Loc Inc has issued 5.4 million units at a price $3.75 for gross proceeds of more than $20 million. The underwriting is being led by Research Capital Corp and includes CIBC World Markets Inc. Directors and officers of the company are participating in this financing round to the tune of $9.8 million. The underwriters have the option to purchase an additional 1.3 million units for a total offering of $25 million. Lumic lands $20M in financing from industry leadersFabless semiconductor company Lumic Electronics Inc has secured $20 million in financing from Stata Venture Partners and others including some of the wireless and semiconductor industries’ leading personalities. This latest infusion of cash brings total financing to more than $24 million. Voice Mobility gets cash infusionVoice Mobility International Ltd has completed a private placement valued at US$2 million. The placement consisted of 666,667 shares issued at US$3 per unit. Each unit is convertible into two common shares as of June 30, 2001. According to terms of the agreement, the money has been placed in escrow and can only be withdrawn in sums of US$500,000 on certain dates.

ROW Short Takes

News | January 22, 2001

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