TMX group TMXmoney

Hemisphere GPS Inc. (HEM)
Exchange: Toronto Stock Exchange
$0.840
May 19, 2013, 7:19 AM EDT
Change: 0.02 (2.44%)
Volume: 77,771

Day Low
0.760
Day High
0.840
CSI's Hemisphere GPS acquires aerial guidance competitor

Del Norte expands Hemisphere GPS' product offerings, market share, global 
reach 

Toronto Stock Exchange Symbol: CSY

CALGARY, Jan. 3 /CNW/ - CSI Wireless Inc., a designer and manufacturer of
advanced wireless and GPS products used in more than 50 countries, today
announced that its Hemisphere GPS division is acquiring Del Norte Technology
Inc. of Euless, Texas, for US$940,000. The transaction is effective January 1,
2006, and is expected to close prior to January 31, 2006.
With 2005 sales of approximately US$1.7M, Del Norte(R) has more than 20
years experience designing and manufacturing specialized GPS products for the
aerial guidance market -- primarily crop dusting or aerial spraying. It has
been achieving annual sales growth of between 15% and 20% in recent years.
Hemisphere GPS is already a global leader in aerial guidance for
agriculture, through its popular Satloc(R) brand that includes AirStar(TM),
LiteStar(TM) and M3(TM) products. Hemisphere will offer its Satloc products
and the Del Norte products -- including DGPS Flying Flagman(R) FliteTrac(TM),
IntelliFlow(R) and Spray Off(TM) -- through a new division called Hemisphere
Air.
"Combining the capabilities of the Satloc and the Del Norte brands will
enable us to offer a broad range of products across almost all product
application levels and geographic regions," said Rick Heiniger, President of
Hemisphere GPS. "Our primary goal is to serve the growing aerial application
industry with very focused effort. We will also be the worldwide market leader
-- accounting for about three-quarters of all GPS aerial guidance sales."
Satloc has a strong customer base in North and South America, Africa and
Australasia that will very effectively complement Del Norte's customer base in
Central America, Australasia and Africa. Satloc and Del Norte will also
capitalize on each other's strong distribution networks, and achieve other
cost-saving operational efficiencies.
"Hemisphere GPS is committed to the aerial guidance market, and our Del
Norte acquisition underlines that fact," Mr. Heiniger said. "We plan to be an
increasingly dominant player in this space. Combining our expertise in pilot
guidance and situational awareness with Del Norte's expertise in aerial flow
control systems and automation will help us succeed."
Del Norte President Ron Spinek, who becomes Vice-President of Hemisphere
GPS and General Manager of Hemisphere Air, added: "This transaction brings
together two of the strongest teams in the industry. Combining our engineering
resources and other product development strengths, while achieving important
cost efficiencies, will mean added value to all Del Norte and Satloc
customers."
Hemisphere GPS is a technology leader in several specialized niche
markets, including both aerial and ground-based agricultural applications. The
company is intent on leveraging its leadership and underlying intellectual
property to increase its dominance in existing GPS markets and in emerging GPS
markets, including forest firefighting, pest control, data collection and
environmental initiatives.
"Being the best in the GPS precision agriculture market is very important
to us," said Stephen Verhoeff, CSI's President and CEO. "The quality of our
products, the growing demand they are generating, and our reputation in the
marketplace, have made precision agriculture an important part of business for
many years. Satloc and Del Norte are leaders in the aerial precision market,
and combining our strengths will ensure that CSI and Hemisphere GPS remain
leaders too."

Transaction Overview
Hemisphere GPS will purchase the Del Norte business and assets --
including working capital of approximately US$250,000 -- for US$940,000 in
cash.
Hemisphere GPS will assume control of Del Norte's leased facilities in
Euless, Texas, and locate Hemisphere Air's headquarters there.
The transaction is subject to certain conditions, including completion of
formal documentation, final board approvals, regulatory approvals and there
being no material adverse change in the business and affairs of Del Norte
before the closing date.
In the short-term, Del Norte and Satloc will operate in a business-as-
usual fashion. Customers can expect no changes or disruptions in service or in
their respective Del Norte, Satloc and Hemisphere GPS contacts.

About Hemisphere GPS
Hemisphere GPS is the world's largest after-market supplier of GPS
products for use in Agricultural Guidance, and a global player in other
rapidly growing GPS-aided sectors including Marine Guidance and GIS & Mapping.
Owned by CSI Wireless Inc., Hemisphere's major house brands are Outback,
Satloc, Crescent and CSI. Hemisphere is a leader in the design and development
of GPS and differential GPS technology.

About CSI Wireless
CSI Wireless designs and manufactures innovative, cost-effective,
wireless and GPS products for mobile and fixed applications in the
agriculture, marine, automotive and other industries. CSI is a leader in
several high-growth markets including Precision Guidance in Agriculture,
Telematics and Desktop Cellular Telephones. The Company, through its Wireless
and its Hemisphere GPS divisions, owns numerous patents and other intellectual
property. CSI's common shares trade on The Toronto Stock Exchange under the
trading symbol "CSY", with approximately 46 million outstanding. The company's
head offices are in Calgary, Alberta, and it has major product development,
sales and marketing facilities in California's Silicon Valley, Arizona, Kansas
and now Texas. For more information about CSI, go to www.csi-wireless.com.

The above disclosure contains certain forward-looking statements that
involve substantial known and unknown risks and uncertainties. These    
forward-looking statements are subject to numerous risks and uncertainties,
certain of which are beyond CSI Wireless' control, including: the impact of
general economic conditions, industry conditions, increased competition, the
lack of availability of qualified personnel or management, fluctuations in
foreign exchange or interest rates, stock market volatility and market
valuations of companies with respect to the announced transactions and the
final valuations thereof, and obtaining required approvals of regulatory
authorities. CSI Wireless' actual results, performance or achievement could
differ materially from those expressed in, or implied by these forward-looking
statements and, accordingly, no assurances can be given that any of the events
anticipated by the forward-looking statements will transpire or occur, or if
any of them do so, what benefits, including the amount of proceeds, CSI
Wireless will derive therefrom.

Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. View delay times for all exchanges.
Market Data powered by QuoteMedia. See the QuoteMedia and TMX Group Terms of Use.