PCTel acquires UMTS antenna maker

PCTel is bolstering its 3G portfolio, today announcing the acquisition of Sigma Wireless Technologies, a Dublin-based maker of antennas for UMTS and public safety networks.

PCTel has long been a player in wireless broadband networks, but its antenna division specialized mainly in Wi-Fi, WiMAX and satellite products. Its RF Solutions division, however, produces scanning products that have seen a 75% jump in sales over the last year, which prompted PCTel to look for ways to expand into other 3G cellular businesses, said Marty Singer, chairman and CEO of PCTel.

“We really believe in the growth of 3G, and we wanted to move our antenna group into the 3G space,” Singer said. “This acquisition gives us the technology we need to expand into UMTS cellular.”

PCTel will pay Sigma Communications Group 19.5 million Euros ($22.5 million) for all of the shares of Sigma Wireless and assumes the group’s 2.5 million Euro pension liability, making the purchase price an even 22 million Euros ($27 million) plus an additional $1.7 million in transaction fees. Built into the agreement is a revenue clause that will allow Sigma’s shareholders to earn up to an additional 7.5 million Euros ($9.1 million) if Sigma meets certain revenue targets by December 2006.

Sigma Wireless designs and manufacturers integrated Variable Electrical Tilt (iVET) antennas, which can remotely adjust and optimize coverage areas and antenna clusters in response to network demands. Unlike narrowband TDMA networks, which use channel management and frequency reuse schemes to handle capacity and call sessions, wideband UMTS dynamically adjusts cell size to manage the network, allowing coverage to expand and contract depending on the usage of the network at any given time. Sigma’s Bluestream management system allows carriers to remotely control those adjustments.

In addition to giving, PCTel access to a critical UMTS technology, the acquisition also expands PCTel’s presence in Europe. Sigma wireless has already deployed with many European carriers, while most of PCTel’s current antenna customers are principally in North and South America, Singer said.