Inovonics acquired by Roper Ind.

Friday, April 1, 2005

LOUISVILLE, Colo. - Roper Industries acquired Inovonics Wireless, a provider of wireless products for security monitoring and control, in late February for a total consideration of $45 million - a deal that allows Inovonics to expand its product line and its distribution channel.

But being under the ownership of publicly traded Roper, a diversified company that provides products and solutions for global niche markets, does not change the direction of Inovonics, which had been privately owned for 15 years.

“We feel we have the best of both worlds in that we are able to maintain our autonomy, location and management,” said Andy Drenick, president of Inovonics. “We now have access to Roper’s capital. And the company has facilities around the world and helps us focus on distribution.”

Now, as part of Roper’s portfolio, Inovonics has the opportunity to work in conjunction with other companies under Roper’s umbrella, such as TransCore, a provider of RFID, mobile asset tracking and satellite-based communications, and automatic meter reading company Neptune Technology Group.

“More solutions and more products will be developed to customers in that market and those products will come from the ability to utilize our partner companies’ reach,” Drenick said.

Inovonics, which accounts for 50 percent of its business within the security sector and employs 200, is the second company Roper has acquired with a presence in the industry, with TransCore being the first in December 2004.

Chris Hix, investor relations with Roper, said Inovonics is a strong addition to its security and radio frequency platforms.

“We like the technology Inovonics has and we like the security space,” Hix said. “The company also naturally fits with the activity we have in our portfolio.”

Hix also said the management team was an additional factor in sealing the deal.

“The reason we bought Inovonics was not just because of the product and the activity in security, but also because it is a well-run company,” he said. “We’d like to continue to support their success.”

For Inovonics, the deal represents an opportunity to meet larger goals now that it has access to capital via Roper.

“We’re been privately owned and independently run for 15 years and we’ve achieved a great deal of success,” said Drenick, “but taking the company to the next level we needed to be acquired by a company like Roper."