Novatel Wireless Acquires Feeney Wireless (FW)
March 30 2015
Novatel Wireless, Inc. has acquired Feeney Wireless, Inc. (FW), a privately-held, Oregon-based
IoT systems integration and services company that specializes in fixed and mobile cellular based
wireless IoT solutions with a focus on product innovation, speed to market, and rapid
commercialization of new connected devices.
FW will operate as a Novatel Wireless company, and the combination will leverage synergies in
product development, engineering services, global channels and complementary resources.
Frequently Asked Questions
Q. What is the cost of the acquisition?
Novatel Wireless will pay approximately $25 million, subject to certain working capital
adjustments, with up to an additional $25 million in potential earn-out payments over four years
based on FW’s revenue and gross profit performance.
Q. What is your strategic rationale for this acquisition?
•
•
•
•
Diversifying Novatel Wireless' business model with an expanded customer base,
products, software (SaaS), and services.
Advancing the company's strategy of being a leading IoT provider that simplifies IoT for
our customers and partners– offering a complete suite of services and solutions in
addition to broadening our device portfolio. FW has developed differentiated solutions
targeting government and enterprise, which includes an ecosystem of products, system
integration, engineering and consulting services.
Creating a strong growth profile by bringing together long-term customer relationships
with wireless carriers, cable operators, distributors, retailers, MVNOs, leading OEMs in
both IoT and M2M vertical markets, enterprises, and application service providers.
Leveraging the research and development, product portfolios, and geographic reach of
the combined companies.
Q. Why is FW selling at this time?
Being a part of a larger and better-capitalized company was the next logical step for FW. FW
customers will benefit in a number of important ways with access to significant new capabilities in
wireless technology and operational efficiencies. Novatel Wireless also brings deep, trusted
relationships with the world's leading wireless carriers and distributors.
Both companies have complementary strengths and an aligned vision of simplifying the
complexities of IoT for their customers and partners. The combined companies of Novatel
Wireless and FW are a great strategic fit.
Q. What does Novatel Wireless gain from this acquisition?
• FW brings expertise in managed services, SaaS, and connectivity solutions; the
combination serves as the cornerstone to execute on Novatel Wireless’ vision to deliver
the broadest, most comprehensive IoT portfolio
• FW expands our addressable market, broadens our range of complementary products,
diversifies our customer base and service offering, and provides significant operating
leverage.
• It will significantly advance Novatel Wireless’ IoT growth strategy, with immediate
accretion to earnings and double the current IoT revenue run rate.
Q. Will FW continue to remain a separate offering/brand and company?
FW will continue to serve its existing customers with existing product portfolio and operate as a
FW, a Novatel Wireless company.
Q. How many employees does FW have?
FW has 91 full-time employees.
About FW (Feeney Wireless)
FW is a team of makers with big ambitions on a mission to connect things. Founded in 1999, FW
is an Internet of Things (IoT) products, systems integration and services company headquartered
in Eugene, Oregon. FW specializes in fixed and mobile cellular-based wireless solutions with a
focus on product innovation, speed to market, and rapid commercialization of new connected
devices.
Whether it is an oil field worker, police officer on the street or fleet owner, FW provides the
technology behind their daily operations. FW’s cellular-based wireless solutions have been
deployed by enterprise customers and public sector agencies around the world. With a strong
engineering heritage and the ability to support customers through the entire IoT lifecycle, FW’s
position in IoT helps businesses to gather meaningful intelligence, transforming the way they
work.
FW operates out of Eugene, Oregon in a 50,000 square foot manufacturing facility – these
buildings are home to corporate administration, new product development, research and
development, customer care and support, and warehousing facilities for large scale IoT
deployments.
FW Management Team
Bob Ralston – Chairman
Bob Ralston is the Chairman and founder of Feeney Wireless. Prior to his
involvement with Feeney, Bob worked for an Oregon-based electric utility
from 1984 to 1999. During that time Bob oversaw the development of one of
Oregon's first cellular mobile data systems used for electronic service order
dispatch. The successful implementation of this system jump-started Bob's
interest in mobile data technology and in 1999, he started Feeney Wireless.
Ralston's first mobile data system helped transform the public utility. By
augmenting their existing RF network with a cellular-based system, the
organization was able to eliminate paper-based service order processes and
benefit from faster data transmission, increased coverage area, and a higher level of control.
After developing this new system, other public utility organizations began expressing interest in
the technology. Ralston realized that this technology was very new and transformative for many
public sector markets that relied on RF technology for their communications needs. He saw an
opportunity for growth in the integrated systems market and decided to start Feeney Wireless.
Ethan Ralston – CEO / President
Since 2003, Ethan Ralston is responsible for all company operations within
Feeney Wireless. Ethan has established Feeney Wireless as a leader within
the M2M industry with a nationwide sales presence, renowned technical support and customer
care operations and an expanding and innovative product lineup. In his last 5 years with Feeney,
Ethan has lead the growth behind the company's practice within the Federal Government vertical
including departments from the Department of Justice, Department of Homeland Security, and
many others. Ethan's experience includes extensive knowledge in various hardware and software
platforms for Mobile and M2M applications. Ethan holds a Bachelor of Science in Business and
Computer Information Technology from the Lundquist College of Business at the University of
Oregon.
Steve Cary - Vice President Sales
Steve Cary is the Vice President for FW, with responsibility for developing and
executing the firm’s strategic sales efforts.
Prior to joining FW in 2009, Steve was Director of Business Development for
RE2 Inc., a specialty robotics firm serving the Department of Defense (DoD)
and the rapidly emerging field of unmanned ground robotics. Steve was
responsible for identifying business opportunities and developing market
research strategies within the company’s DoD customers, including the Army,
Navy and Air Force. Steve has over 10 years of experience in the IT industry and has extensive
experience in product development, consulting and systems integration. Prior to joining RE2,
Steve served as a consultant for a successful software startup, Landslide, Inc., guiding their
product development strategy. Steve holds an MBA from the University of Pittsburgh and a BA in
Communications from the University of Washington.
John Nepute - CFO
John Nepute is most notably known for his tenure at Monaco Coach
Corporation. He is an experienced corporate financial manager with 15 years
of executive level financial management experience. He holds an MBA from
the Lundquist School of Business at the University of Oregon, a Bachelor’s of
Science from Georgia Institute of Technology, and was a Certified
Professional Accountant from 1986-1995.
Justin Bloom - Chief Technology Officer
Since joining Feeney Wireless in 2004, Justin Bloom has architected and
managed the deployment of many complex cellular wireless data systems for
a variety of applications, including public safety, transportation and
surveillance. Justin is responsible for managing Feeney's technical
infrastructure and product engineering, including integration, deployment, and
support processes. Justin holds a BSEE (Electrical and Computer
Engineering) from Oregon State University and has been instrumental to the
growth of Feeney Wireless.
Justin provides key technical understanding and works closely with Bob Ralston to research and
develop new products and solutions. Justin is responsible for the outside and inside engineering
and technical teams and provides continuing training to these individuals.