Dallas-based telecommunication company COMSovereign Holding (Nasdaq: COMS) has agreed to acquire signal processing technology developer Innovation Digital through an $8 million transaction both parties expect to close within a 10-day period.
COMSovereign said Wednesday the deal would add signal processing tools and intellectual property to the firm’s portfolio of wireless technology platforms.
Innovation Digital offers IP licensing services intended to help customers implement digital signal processing tools for applications such as high-performance communications, signals intelligence and electronic warfare.
The San Diego-based company’s clients include the Department of Defense and defense contractors General Dynamics (NYSE: GD), Raytheon Technologies (NYSE: RTX) and L3Harris Technologies (NYSE: LHX).
Scott Velasquez, founder of Innovation Digital, will join COMSovereign as chief research officer upon the deal’s closure and will also oversee the latter’s Lextrum and VEO businesses.
The deal consists of restricted common stock valued at $6.4 million and a cash value of $1.6 million.