PDV, which is run by the co-founders of Nextel Communications Inc., said it has agreed to buy all six of Sprint's 900-megahertz spectrum licenses. According to a Tuesday press release from PDV, upon the completion of the deal with Sprint, it will focus on developing a walkie-talkie-style service for small and medium-size businesses.
The Paterson, New Jersey-headquartered company said it has already received approval for the service — which will be offered primarily through Motorola Solutions Inc.'s authorized dealer network — from the Federal Communications Commission.
"With the availability of Motorola Solutions' digital radio technology, we see an opportunity to incorporate PDV's proprietary cloud-based mobile resource management solutions into a next generation offering for businesses," Brian McAuley, chairman of PDV and one of Nextel's co-founders, said in a statement on Tuesday. "These solutions increase productivity through the delivery of real-time information from and about mobile workers to their managers."
Motorola Solutions will lease a portion of the spectrum from an undisclosed PDV subsidiary, PDV said.
Morgan O'Brien, who serves as PDV's vice chairman and who co-founded Nextel with McAuley, echoed the sentiments of his colleague in a Tuesday statement of his own.
"By acquiring Sprint's nationwide spectrum at 900MHz, we take on the challenge of making the most efficient use of that spectrum," O'Brien said. "The selection of Motorola Solutions' digital radio technology is the first step in that process. We will continue to explore ways to further improve spectrum efficiency."
John C. Pescatore, CEO of PDV, praised his "extraordinarily talented team of telecommunications industry veterans," in a statement, saying that they have helped propel PDV to be positioned to create the "largest private push-to-talk network in major markets throughout the United States."
PDV paid Sprint for its spectrum licenses in the form of $10 million worth of PDV common stock. The company said it recently raised more than $218 million in equity funding in a private placement with institutional investors.
FBR Capital Markets & Co. acted as the sole initial purchaser and placement agent. The identities of the rest of the investors were not disclosed.
McAuley and O'Brien co-founded Nextel, which was originally known as FleetCall, in 1987. In the early 2000s, Nextel — which in 2005 would merge with Sprint — made a name for itself with the introduction of push-to-talk technology that enabled its cellphones to be used as high-tech walkie-talkies.
PDV — which in addition to its planned Nextel-esque two-way radio network develops mobile workforce communications and management solutions and provides customers with voice and photo documentation, GPS tracking and cloud-based management tools — was born in 1998.
Representatives for Sprint and Motorola did not immediately respond to requests for comment on Wednesday.
Source - http://www.law360.com/articles/578220/pdv-raises-218m-will-launch-2-way-radio-network