Honeywell (NYSE: HON) has signed a definitive agreement to acquire EMS Technologies (NASDAQ: ELMG) for $33 per share, or approximately $491 million, in cash. The purchase price is roughly 13 times EMS’ 2010 earnings before interest, taxes, depreciation and amortization.
EMS Technologies provides connectivity solutions for networking, rugged mobile computers and satellite communications. The company’s $181 million global resource management division provides highly ruggedized mobile computing products and services for use in transportation, logistics and workforce management. It also uses satellite-based asset tracking and messaging technology. Its $174 million aviation divison provides terminals, antennas, in-cabin network devices, rugged data storage and surveillance applications for aircraft.
“This is another terrific transaction for our scanning and mobility business, ” said Honeywell Automation and Control Solutions President and CEO Roger Fradin. “EMS strengthens our core mobile computing business and expands our addressable market with complementary new products, channel partners, and entry into the warehousing and port segments that we believe will be growth drivers for the business. This also represents an opportunity to demonstrate our proven acquisition integration process.”