Late last year, Digital Angel Corp’s UK subsidiary Signature Industries, entered into an agreement to acquire certain assets and customer contracts of McMurdo Ltd, the UK’s premier manufacturer of emergency location beacons, from Chemring Group PLC.
Digital Angel, a global leader in the development and deployment of sophisticated RFID and GPS technology, will purchase McMurdo for approximately $6.2 million with additional deferred payments ranging from $0-$3 million dependent upon performance of the business following the sale.
According to Kevin McGrath, CEO of Digital Angel, “This acquisition will more than double the revenue base of our survival radio business and significantly broadens our product offerings in both the maritime and military sectors.”
Both Digital Angel and McMurdo have a long history of supplying critical safety and location products. Through the SARBE division of Signature Industries, Digital Angel is a global leader in providing the military sector with survival radio technology, while McMurdo holds a definitive edge in the maritime industry.
Together these companies will become the premier manufacturer of Personal/Emergency Locator Beacons. McMurdo is a leader in the development and manufacture of safety equipment including the original EPIRB (Emergency Position Indicating Radio Beacon) and the first GMDSS-approved Search And Rescue Transponder (SART).
Emergency Locator Beacons are the core competency and key growth area for Digital Angel and its subsidiary Signature. Impending changes to the COSPAS-SARSAT satellite monitoring system mean much of the equipment currently in service will require replacement by February 2009. McMurdo and SARBE, with its improved range of radios such as the SARBE G2R and the SARBE 6-406, are uniquely positioned to exploit these opportunities in their respective markets.
