TCS Acquires Former Autodesk Unit LocationLogic
Further consolidation in the North American LBS market.
TeleCommunication Systems (TCS) has acquired the assets of privately-held LocationLogic LLC (the former LBS unit of Autodesk).

TeleCommunication Systems acquired LocationLogic in a transaction structured as an asset purchase for approximately $25 million, comprised of US$ 15 million paid in cash and US$ 10 million in shares. LocationLogic assets were acquired by private equity investors Hale Capital Partners and Hale Global from Autodesk earlier in 2009.

Substantially all of the LocationLogic revenue stream is recurring service revenue from hosted infrastructure software and location-based applications, providing high visibility to future revenues. Based on 2009 run rate revenues of $18 million and EBITDA of $5 million from customers which include two leading US wireless carriers, TCS expects the acquisition to be immediately accretive in 2009.

"The addition of LocationLogic assets strengthens TCS in four significant ways," said Maurice B. Tosé, TCS chairman and CEO. "First, it enhances our LBS infrastructure platform, providing key authentication and privacy technology to better position us to win new carrier business. Second, LocationLogic expands our LBS application portfolio beyond navigation, traffic, and points of interest by adding family locator, mobile resource management, and phone recovery and security applications. Third, it deepens our longstanding relationships with two of the largest North American carriers and leaders in LBS. And fourth, the acquisition adds about 10 patents and 12 patent applications that are complementary to our existing patent portfolio. Overall, we expect this acquisition to further solidify our LBS leadership in an industry which is at the early stages of what is widely viewed as a long term, high growth market."
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