Comsovereign makes first move toward acquisition

ComSovereign Corp., a consortium of businesses focused on enabling 5G technology, has taken a step toward making its first acquisition since the merger with Drone Aviation late last year.

Dallas-based ComSovereign said Friday it signed a letter of intent to purchase Virtual Network Communications, a provider of mobile and fixed broadband communication equipment for government and commercial enterprises.

Both companies expect to close the transaction by April 15 but the deal remains subject to a due diligence review, which would be followed by the negotiation and execution of a definitive acquisition agreement.

Virtual Network Communications makes its products for public safety, homeland security, defense and commercial private network users. The Chantilly, Virginia-based firm’s products include quick deployable micro LTE platforms, customer premise equipment and small cell technology.

"VNC's capabilities can serve as a cornerstone in our strategic vision to make ComSovereign into one of the only US-based providers of connectivity solutions that span the entire data transmission spectrum,” ComSovereign CEO Dan Hodges said in a release.

“Through a combination of proprietary hardware and software, and a growing list of tier-one commercial and national security customers, this transaction can deliver both near-term synergies and long-term value to our shareholders and customers in 4G and 5G infrastructures, and those already planning for 'nG' and beyond."

In a release last month, ComSovereign said it expects to report $11.8 million in pro forma revenue for last year. That figure adjusts results as if the deal with Drone Aviation closed on Jan. 1, 2019.