Sepura,the UK-based critical communications solution provider, has now been formally contracted to supply a TETRA two-way radio network for New York City Transit. The Group stated on 4 April 2016 that it had received a ‘Notice to Proceed’ pending the signing of the full contract by its partner Parsons Transportation Group, which is responsible for the overall US$202m project.
The contract, valued at c. US$34 million, covers system design, project management and the supply of 40 base stations, together with a Teltronic CeCoCo Command and Control solution and approximately 7,500 terminals. The contract was won by Sepura subsidiary Teltronic, which operates under the PowerTrunk name in North America.
Gordon Watling, chief executive officer at Sepura commented: "This contract endorses both our acquisition of Teltronic and our strategy to focus on both the global transport sector and developing our business in North America - the two fastest growing segments for TETRA."
The contract has run into some controversy. In March 2016, rival bidder Motorola Solutions filed a formal protest against the decision to award the contract to PowerTrunk on the grounds that it is illegal to deploy TETRA in the 700MHz band. It is not clear where this has reached.
In a separate announcement on Friday 15 July 2016, Sepura announced that at the general meeting held during the day that all resolutions to approve the firm placing an open offer to raise £65m of gross proceeds were duly passed. The board said admission of the new shares was expected to occur on or before 0800 BST on 18 July.
The capital raising exercise is part of Sepura’s strategy for reducing its net debt position of €119m (as of close of financial year 1 April 2016) caused in part by its acquisition of Spanish PMR vendor Teltronci in May 2015. The company has also revised its banking arrangements, while new CFO Richard Smith is leading a programme to drive operational improvements and strengthen cash management.
For more on Sepura’s 2016 results see: Sepura pulls out of DMR and posts €19m pre-tax loss for 2016