Benzinga | Apr 14, 2021 10:41AM EDT

ComSovereign Acquires Communication Systems Solutions Provider Innovation Digital For $8M

* ComSovereign Holding Corp (NASDAQ: COMS) announced the acquisition of Innovation Digital for $8 million consisting of $1.6 million in cash and convertible debt and $6.4 million worth of shares.

* Innovation Digital is a developer of mixed analog/digital signal processing solutions, intellectual property (IP) licensing, design, and consulting services. The company's clients included multiple U.S. defense contractors like General Dynamics Corp (NYSE: GD), Raytheon Technologies Corp (NYSE: RTX), L3Harris Technologies Inc (NYSE: LHX), and U.S Department of Defense agencies, including The Naval Surface Warfare Center, the Missile Defense Agency, the Air Force Research Laboratory and DARPA.

* Innovation Digital founder Dr. Scott Velasquez will become the Chief Research Officer for ComSovereign, including the Lextrum, VEO, and Innovation Digital business units.

* Innovative Digital is estimated to produce $3 million in net revenue from licensing in 2021. It held 21 issued and several pending U.S. Patents.

* The acquisition will fast-track the integration of Lextrum's In-Band-Full-Duplex and the licensed Transpositional Modulation technologies into COMSovereign's 'Polaris' 5G radio products, stated ComSovereign CTO, Dr. Dustin McIntire.

* ComSovereign had recently acquired video and communications products and physical security solutions provider RVision Inc for $5.58 million.

* ComSovereign held $0.73 million in cash and equivalents as of Dec. 31, 2020.

* Price action: COMS shares traded higher by 3.41% at $2.275 on the last check Wednesday.