General Dynamics to acquire Fortress Technologies

General Dynamics announced today that it has entered into a definitive agreement to acquire Fortress Technologies, Inc., a provider of secure wireless networking equipment for the US military and other government customers. The value of the cash transaction, which is expected to be accretive to General Dynamics' earnings beginning in 2012, has not been disclosed.

The acquisition has been approved by the boards of directors of both companies and is subject to normal regulatory review. General Dynamics expects the transaction to be completed in the third quarter of 2011.

Fortress Technologies produces a portfolio of mesh networking products that enable secure wireless local area network (LAN) capabilities for battlefield logistics, convoy, command post and soldier applications. Built on commercially available technologies, Fortress Technologies' ruggedized products improve soldiers' combat effectiveness and survivability by increasing their access to information. The company is based in Westford, Mass., and has approximately 70 employees.

Fortress Technologies will be managed by General Dynamics C4 Systems, which is based in Scottsdale, Ariz. General Dynamics C4 Systems designs, manufactures and delivers trusted and secure communications systems, command and control systems and operational hardware to customers within the US Department of Defense, the intelligence community and federal civilian agencies, and to international customers.

"Fortress Technologies successfully delivers commercially developed, commercially priced secure
Wi-Fi/WiMAX networking capabilities that extend the reach of our current broadband tactical-internet offerings," said Chris Marzilli, president of General Dynamics C4 Systems. "Our high-priority military and civilian users require cyber-protected access to 4G internet services. Fortress effectively provides them with highly secure 'hot spots' downrange over the last tactical mile."

"This acquisition will enhance General Dynamics' ability to meet the growing tactical-communications requirements of global defense and civilian agencies, bringing new value to our advanced networking solutions. Fortress Technologies also will continue its current model of selling products to other DoD prime contractors and integrators," Marzilli said.

Fortress Technologies is the wireless-technology provider for the Combat Service Support Automated Information System Interface (CAISI) system, the Army's only certified tactical wireless LAN. Since 2001, Fortress Technologies has delivered over 55,000 units as a subcontractor on this program. Designed for the transport of logistics data, the CAISI systems connect brigades, battalions and companies increasing the efficiency of the Army logistics systems that support soldiers in the field. The company provides technology across the federal market to customers including the US Marine Corps, the Navy, the National Guard, combatant commands and the Department of Energy.

The company is also a member of the EDGE Innovation Network sponsored by General Dynamics C4 Systems. The EDGE is a collaborative, open-environment initiative enabling industry and academia, with government input, to work together to enhance the delivery cycle of new technologies and innovative capabilities to first responders.

Source: General Dynamics

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