Intrado Acquires BMD WirelessIntrado Acquires BMD Wireless

Intrado acquires bmd wireless for $4.2M in cash and 735,000 shares, expanding its presence into the global wireless data services market

February 4, 2004

4 Min Read

LONGMONT, Colo. -- Intrado Inc. (NASDAQ: TRDO), North America's leading provider of 9-1-1 infrastructure systems and services, and experts at engineering and managing complex integrated data and telecommunications solutions, today announced that it has entered a definitive agreement to acquire bmd wireless AG, a Swiss corporation headquartered in Switzerland. By combining key assets and capabilities, the two companies aim to more quickly and effectively design, build and deliver messaging platforms, tools and solutions that enable wireless service providers to provide innovative voice and data services to their subscribers.

bmd wireless is a pioneer in core network messaging infrastructure solutions, enabling mobile and application messaging traffic for a wide range of mobile operators and service providers. Intrado is the leader in the delivery of robust, reliable public safety solutions for wireless service providers. This strategic acquisition blends the strengths of both companies with complementary goals, talented resources and platforms as well as a commitment to delivering and improving the benefits of new data services applications. The mobile messaging market represents a significant opportunity for Intrado with approximately 85% of wireless operators' data revenues generated from SMS traffic (Source: Ovum Ltd.). By 2007, the global messaging industry is estimated to be upwards of a $69 billion market (Source: Analysys Research Ltd.).

"Intrado's wireless customers value the reliability of our E9-1-1 solutions. These customers want to offer data services that create customer loyalty and provide expanded revenue opportunities with new and existing subscribers. With the bmd acquisition, Intrado is well positioned to help our customers be successful in delivering dynamic data services offerings," said George Heinrichs, Chief Executive Officer for Intrado. "This move into commercial data services is a powerful step in support of our strategy to extend beyond our E9-1-1 and public safety business. This acquisition also reinforces our commitment to expand internationally and establish a strong European presence."

"Our combined strengths will put us in a better position to deliver the benefits of each company's solutions to the international marketplace," said Christopher Tiensch, Chief Executive Officer of bmd wireless. "Our expertise in providing messaging solutions to wireless service providers perfectly complements Intrado's strategy for expansion into new markets with new services."

"Across the globe wireless and mobile operators continue to look for solutions that increase their revenue and profitability, as well as their ability to differentiate services, provided in either a licensed or outsourced model by companies with proven expertise," said Iain Gillott, of iGillottResearch, Inc. a market strategy consultancy focused on the wireless and mobile industry. "Through this acquisition, Intrado will be able to offer such solutions, while allowing the company to become a major messaging player throughout the world."

bmd wireless brings to Intrado a global base of leading wireless operators and service providers and will continue to operate under the bmd wireless brand from its current location in Switzerland. bmd wireless was recently named Hewlett-Packard's 2003 OpenCall software partner of the year for Europe, the Middle East and Africa (EMEA). The Partner of the Year award recognizes companies who demonstrate unwavering commitment to sales leadership, world-class implementation services and customer advocacy, while evangelizing the HP brand.

bmd's solutions are selected by wireless operators and service providers to deliver high value services to their consumer and enterprise subscribers. Some of bmd's solutions include: Wireless Application Messaging Server, which enables global SMS access to applications and services; Personal Call Collector, which captures attempted or missed calls when a mobile user is out of coverage, not reachable or when no voice mail is left; and SMS Spam Filtering, which offers functionality to block unsolicited SMS messages from on-net or off-net sources.

Under the terms of the acquisition agreement, Intrado will acquire all of the outstanding common stock of bmd wireless in exchange for:

  • approximately $4.2 million of cash;

  • approximately 735,000 shares of common stock; and

  • an obligation to issue up to 210,000 additional shares of common stock during the first quarter of 2005, subject to bmd's attainment of 2004 revenue targets (the "Earnout Provision").



As of February 2, 2004, Intrado had 16,210,787 shares of common stock outstanding. Intrado expects the closing for the acquisition to occur by the end of February. After the closing, bmd wireless will become a wholly owned subsidiary of Intrado and will retain its current leadership team. The acquisition is expected to be immediately profitable and accretive.

Intrado Inc.

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