Cygnal Technologies Corporation, of Oshawa, Ont., announced yesterday the signing of agreement to acquire network provider Integrated Cable Systems Inc. for $19 million in cash and stocks.
Toronto-based ICS (Integrated Cable Systems) designs, installs and maintains private high-speed Internet networks for businesses in Canada using primarily Cisco and Lucent products. ICS generates revenues from fibre sales and installation, structured cabling, IT support, sales and maintenance services. ICS is an IBM business partner, providing cabling services to IBM’s customers and its customers include Manulife, Hudson’s Bay Company, Kraft Foods and Future Shop.
Cygnal Technologies designs, equips and integrates wired and wireless broadband, data and telecommunications networks including: satellite, coaxial cable, fibre optic and microwave. Customers include cable companies, telephone companies, broadcasters, utilities and corporations.
Doug Young, president and CEO of Cygnal said, in a statement, that the acquisition is expected to increase Cygnal’s revenues by approximately $40 million over the next 12 months. Young said he hopes that the acquisition of ICS and Accord Communications, acquired last month, his company will be greatly enhanced to meet the explosive growing demand for fibre optics and high speed Internet networks.
Under the deal the management team of ICS, headed by ICS president Jim Taylor, will continue to manage the company, which will become a division of Cygnal.
ICS has more than 230 employees across Canada with offices in Vancouver, Calgary, Edmonton, Sudbury, London, Ottawa and Montreal.
