General Dynamics [GD] recently said it has agreed to acquire Fortress Technologies Inc., a developer and supplier of secure wireless networking equipment for United States military and government customers.
Terms of the deal, which is expected to close in the third quarter of 2011 subject to regulatory approvals, were not disclosed. GD expects the acquisition to be accretive to earnings in 2012.
Fortress has a portfolio of commercially-based mesh networking products for secure wireless local area networking used for battlefield logistics, convoy, command post and soldier applications. The company has over 65,000 systems deployed and serving as the infrastructure backbone of the largest Defense Department wireless mesh network, it says.
GD said that Fortress will allow it to meet additional communications requirements for its key customers in the area of secure local area wireless networking.
“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,” Chris Marzilli, president of GD’s C4 Systems business, said in a statement. “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.”
GD also said that Fortress complements its Warfighter Information Network-Tactical, the backbone communications network for warfighters on the move, by providing Wi-Fi connectivity from WIN-T to soldiers, vehicles and computers.
Fortress’ largest customer is the Army but it also provides technology to the Marine Corps, Navy, National Guard, combatant commands and the Energy Department. The company’s key program is the Combat Service Support Automated Information System Interface (CAISI) system for which it is the wireless technology provider to prime contractor TELOS. CAISI is designed for the transport of logistics data and connects brigades, battalions and companies.
Jefferies & Co. served as Fortress’ financial adviser on the deal. Fortress, which is based in Massachusetts, has 70 employees. Fortress will be managed by GD C4 Systems.