Computer outfit Honeywell has announced to the world+dog that it is going to buy EMS for $491 million.
EMS makes wearable mobile computers and satellite-based cargo tracking equipment, along with antennas and broadband equipment that allows airplane passengers to connect with the Internet.
Apparently, it is all a cunning plan by Honeywell to start selling wireless communications gear used to track cargo to its portfolio of products.
Honeywell is very keen to buy EMS. It has offered nearly 60 percent more than the company is worth. Honeywell Chairman and Chief Executive Dave Cote said that the outfit fitted into company's glorious empire across Global Resource Management and Aviation. He said that it will bring the company engineering expertise, new technology, different global markets and other areas for future expansion.
Rob Wilson, Honeywell's president of the company's business and general aviation segments told the Wall Street Journal that the sale was a good way to get into satellite communication. Honeywell can start supplying hardware and some services to passengers while also beaming more data to and from cockpits.
EMS had been considered ripe for being bought by someone. Its board said that it was evaluating offers from potential buyers and one of its key investors hedge fund MMI Investments had been pressuring the board for a sale. Its value was the highest it had been for some time thanks to the release of its Lits Aspire family of airborne-communication systems.