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GDSI Acquires Privately Held Rontan Group of Brazil

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GDSI acquires Brazil-based Rontan Group

GDSI has announced that it has acquired the Rontan Group ("Rontan"), headquartered in Sao Paulo state, Brazil. At an upcoming special meeting, GDSI's board of directors is expected to elect Rontan's CEO, Edigimar A. Maximiliano Jr., Chief Executive Officer of GDSI and Richard J. Sullivan Non-Executive Chairman.

Founded in 1970, privately held Rontan designs, manufactures and delivers emergency warning equipment specifically for public safety organizations and professionals. Rontan exports products to many of the world's most competitive markets, including the United States, Canada, Central and South America, Europe, Asia, Australia, Middle East and Africa. The largest specialty vehicles and acoustic and visual signaling equipment company in Latin America, Rontan has earned ISO and TS Certifications, attesting to the quality of its management systems.

With 2014 revenue of R$ 500 million (approximately US$ 128 million), Rontan produces some 5,000 vehicles per month and has approximately 1,200 direct and indirect employees. In 1999, through a partnership with the biggest worldwide manufacturers of vehicles for fire fighters, Rontan became an authorized representative of the Oshkosh Pierce vehicles.

Rontan Telecom is the largest manufacturer and distributor of Motorola radios and communication trunking systems for police forces in Brazil, providing technical assistance on the full line of Motorola radios.

"This exciting transaction represents a significant step forward for GDSI," said Richard J. Sullivan, expected to be named non-executive Chairman of GDSI. "We have been extremely impressed by Rontan's 45 years of experience and exceptional record of serving customer needs with top-quality products and services – both in Brazil and internationally. Rontan's capabilities create enormous synergies with the specialty vehicles produced by North American Custom Specialty Vehicles (NACSV), GDSI's wholly-owned subsidiary. We're especially delighted that "Max" Maximilliano (Rontan's CEO, Edigimar A. Maximilliano) will serve as GDSI's CEO. Max is an extremely talented and experienced leader, and we're excited about welcoming Max and the entire Rontan team to the growing GDSI family."

"This is a momentous milestone in Rontan's 45-year history," said Edigimar Maximilliano ("Max"), expected to be named GDSI's new CEO. "The combination of Rontan and GDSI – with GDSI's experienced management team and board of directors headed by Richard Sullivan – will help us expand our capabilities while continuing to provide our worldwide customers with world-class products and services. I'm looking forward to leveraging Rontan's extensive experience and international reach to enable the new GDSI team to seize the many profitable growth opportunities envisioned by GDSI's global strategy."

Refer to GDSI's October 19, 2015, 8-K filing for more details about this transaction.

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