Where Digital Solutions Converge
GDSI has announced an agreement to acquire a leading original device manufacturer (ODM) design and engineering services company that will give us the ability to simulate and analyze prospective inventions and designs prior to making a commitment to license or acquire the technology.
GDSI has announced an agreement to acquire a leading communications company with the capability to link a host of battlefield assets via secure, encrypted wireless communications.
GDSI has filed a Form 8-
Freedom describes itself as the world's leading innovator, designer, manufacturer and marketer of firearms, ammunition and related products for the hunting, shooting sports, law enforcement and military markets. It indicates that, as one of the largest manufacturers in the world of firearms and ammunition, it has some of the most globally recognized brands including Remington®, Bushmaster® Firearms, DPMS/Panther Arms™, Marlin®, H&R®, The Parker Gun™, Mountain Khakis®, Advanced Armament Corp. ®, Dakota Arms®, Para™ USA and Barnes® Bullets.
As described in the Form 8-
Richard J. Sullivan, GDSI’s Chairman and CEO, offered several reasons for optimism regarding the proposed acquisitions discussed in the Form 8-
“The GDSI team is extremely excited and confident about all three of these proposed acquisitions. There are powerful synergies between Freedom and the two other companies that will fuel our future growth along with the transformation of the cyber arms industry. Cyber-
“Results like these truly represent the baseline of our expectations going forward. As discussed previously, we plan to follow a similar acquisition strategy to the one we successfully pursued at Applied. Under my leadership at Applied, the GDSI team successfully executed a private-
“This model, which takes advantage of market trends, technological advances and industry consolidations to fuel profitable growth, presents a value proposition that is perfectly suited to the military armament industry, an industry that is heavily fragmented and evolving rapidly toward a RFID/WiFi-
“Our team plans to drive unprecedented consolidation and convergence in the cyber arms arena at least in part through the acquisition strategy outlined in our Form 8-
“The bottom line is: Our excitement and confidence derive from the fact that we’ve done this before and we see enormous potential that we’ll be able to do it again.”
March 17, 2014
Mr. George K. Kollitides, Chairman & CEO
Remington Outdoor Company, Inc.
870 Remington Drive
Madison, NC 27025-
RE: GDSI’s Unsolicited Offer to Buy Remington Outdoor Company (“ROC”)
Dear Mr. Kollitides:
It has come to my attention that GDSI's filing of a Form 8-
First, GDSI is serious and qualified in its commitment to acquire ROC. In the last company (Applied Digital Solutions, Inc. -
Second, I am prepared to work with you and ROC senior management to ensure a smooth, seamless and successful transition. GDSI's plan is not to run and operate ROC. That is the role of ROC management. GDSI's value and contribution to shareholder's equity stem from our proven record of success (same management from ADSX) in helping to integrate transformative technologies; fortify brand leadership strategy through partnerships and alliances; and provide stable, long-
Third, it is precisely because the ROC sale process last year was inconclusive that the GDSI offer merits fair, complete review and consideration. Our view is that ROC is a valuable and iconic global brand leader that deserves a better alignment between shareholder base and the business/industry which ROC serves. I am confident that an open and earnest discussion between us will yield a mutually acceptable understanding that GDSI represents an extremely attractive liquidity partner for ROC.
Richard J. Sullivan
Chairman & CEO
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