FLYHT Aerospace Solutions has acquired the asset of Panasonic Weather Solutions (PWS), based in Littleton, Colorado, from Panasonic Avionic Corporation (PAC).
Currently serving more than a dozen airlines in North America, Europe and Southeast Asia, PWS provides Iridium satellite communications systems, aircraft tracking and alerting, the FlightLink™ Iridium Satellite Data Unit, and Tropospheric Airborne Meteorological Data Reporting (TAMDAR™) sensors.
The assets FLYHT is acquiring include among other things, 27 employees; 10 service contract with airlines in North America, Europe and Southeast Asia, including a major Asian carrier; an Iridium Value Added Reseller (VAR) license, and a Federal Aviation Administration Parts Manufacturer Approval (PMA) capability; the technology and intellectual property for the FlightLink™ Iridium Satellite Data Unit and Tropospheric Airborne Meteorological Data Reporting (TAMDAR™) sensor; and a weather observation contract through a third party that supplies weather data observations to NOAA (the National Oceanic and Atmospheric Administration).
Pursuant to a transition agreement between the parties which ends March 31, 2020, FLYHT and PAC will work closely together to complete several ongoing FlightLink and TAMDAR deployment programs, while also providing Tier 1 and warranty support via PAC's Customer Performance Center and Panasonic Technical Services' facilities. This Transition Period will give FLYHT time to integrate business and operational functions between its Calgary, Alberta and PWS' Littleton, CO locations. In addition, to keep the asset acquisition cash-flow neutral to FLYHT during this period, PAC will pay FLYHT a subsidy of US$3.3 million PAC's total subsidy can be increased or reduced if FLYHT's income relating to the acquired PWS assets falls short of or exceeds certain agreed upon thresholds. Pursuant to the terms of the acquisition of PWS assets and the transition agreement, FLYHT is paying no monetary consideration to PAC for the PWS assets.
