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Adelaide-based technology company Codan (ASX: CDA) is poised to wrap up its third acquisition for 2023 after securing an agreement to buy US-based wireless broadcast specialist Wave Central LLC for up to $21.3 million.
Codan, which earlier this year completed separate takeovers in the UK and the US, is acquiring Wave Central for an upfront cash payment of $9.1 million plus an additional $12.2 million if earn-out targets are met over the next three years.
Wave Central is being acquired by Codan’s UK subsidiary Domo Broadcast Holdings, owner of the company’s Tactical Communications Broadcast division which has been using Wave Central as its primary distribution channel in North America for the past 15 years.
Wave Central is described as a leading North American systems integrator of wireless broadcast equipment which creates industry-specific products that are integrated with Domo’s technology for sports, cinema and broadcast applications.
Its product portfolio comprises wireless video camera links and high-quality broadcast products using the core Domo Broadcast technology.
The founders and senior management of Wave Central are joining Domo following the acquisition which Codan says will ‘increase opportunities in news coverage for live events, college and professional sports, film production and unmanned applications in the growing global remote broadcast market’.
“The Wave Central and Domo Broadcast partnership spans over 15 years in delivering integrated broadcast solutions,” says Paul Sangster, the president of Codan’s Tactical Communications division.
“In recent years, through the acquisition of Broadcast Wireless Systems and organic growth, Tactical Communications has grown its Domo Broadcast business revenues to circa $20 million.
“The acquisition of Wave Central strengthens Domo Broadcast to be a truly global broadcast business, with strong market share within North America.”
Sangster says the Wave Central acquisition will also provide direct access to the North American market for Domo Broadcast’s recently launched Onyx and Quartz product lines, which deliver 4K streaming and mesh technology for intercom, robotics and camera control.
Domo Tactical Communications, which is based in the US, is a provider of short-range high-bandwidth communications to customers such as military and special forces, intelligence agencies, border control and first responders.
Tactical Communications' radio and wireless communications technologies also have applications in unmanned systems, humanitarian and broadcast services.
Codan says the Wave Central acquisition is consistent with the company’s strategy of acquire ‘complementary businesses and to leverage our radio and wireless technology to build scale in the markets we target’.
“Domo Broadcast has a dominant presence in wireless camera links in the European broadcast market and this acquisition will allow the business to leverage Wave Central’s strong reputation and market leading system integration capability, to drive growth in North America,” the company says.
The latest acquisition follows Codan’s $6 million buyout in February of GeoConex, an integrator of US Public Safety and Homeland Security systems, and the $22 million acquisition in August of UK-based Eagle NewCo, a command-and-control solutions business, from NEC Software Solutions.
Codan was founded in South Australia as Eilco in 1959 as a provider of electronics in rural Australia including The Royal Flying Doctor Service, before growing through acquisitions and expanding into the military communications field in 2006.
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