Titan to Acquire Communications Company

Titan Corp. is acquiring Datron Systems Inc., a Vista, Calif.-based provider of radio and satellite-based communications systems and broadband communications products for government and commercial markets, Titan announced June 25.


The transaction is valued at between $46 million and $56 million, and will be carried out in a swap of Titan stock for Datron's outstanding shares. Datron's 2001 revenue was $62.3 million.


In addition to reducing Titan's overall debt by approximately $9 million, the transaction is expected to add to Titan's earnings once the integration of Datron is completed later this year.

The acquisition will be accounted for as a purchase and is expected to close by the end of the third quarter.


Datron is focused on Titan's core competency, communication systems, and has technology with commercial potential, said Gene Ray, chairman, president and chief executive officer of San Diego-based Titan.

"Given Datron's unique expertise in securing foreign government customers, the acquisition will also allow us to significantly expand our presence in foreign countries," Ray said.


Datron was founded in 1969 as a defense contractor. The company pioneered the development of antennas to track airborne rockets, missiles, weaponry and spacecraft. It has developed expertise in remote sensing, image processing, satellite tracking and antenna manufacturing.

Its range of products includes remote-sensing satellite Earth stations, image-processing software, tracking systems and voice and data communications radio products.


More recently, Datron has developed technology for bringing broadband voice, video and data communications to commercial airlines, among other products. The company also is positioned to pursue government opportunities from the federal public-safety wireless-network market through development of its line of digital radios.



"We believe Datron's extensive expertise in antenna systems and communications products is highly complementary to our internal capabilities, and their operations can be easily integrated into Titan," Ray said. "We are also very excited about Datron's prospects in the area of providing the antenna technology for high-speed Internet access to commercial airlines."


Titan has annual revenue of about $1.1 billion and employs 7,800 people. Datron has 334 employees.