Source: mergermarket, the mergers & acquisitions (M&A) intelligence and research service

By Jef Cozza - www.mergermarket.com

Wave Dispersion Technologies, a privately held manufacturer of port security barriers, is contemplating an equity round and is open to a potential sale, President Dennis Smith said.

The company, headquartered in New Jersey, designs and manufactures a modular barrier system known as WhisprWave for both commercial and military ports. Founded in 1995, it only began selling to the US military in 2000. Now, Wave Dispersion receives roughly 60% of its revenues from military contracts, a company insider said. Revenues have grown from USD 80,000 in 2000, to potentially USD 10m in 2006. According to company documents, the WhisprWave SCIB (Small Craft Intrusion Barrier), is used by the US Army, US Navy, US Coast Guard, and US Army Corps of Engineers.

Smith said the company is more likely to pursue an equity round of about USD 10m, potentially from a fund that had familiarity with the sector and could provide some strategic value to the company. Alternatively, the company would be open to an outright sale to a defense integrator or engineering firm, he said.

"We've come to a critical juncture," Smith said. "We're not actively looking to be bought. On the other hand, we could grow the company 10 times faster if we were well-capitalized."

Smith said that, as Wave Dispersion begins to sell more globally, it would make sense to partner with a firm such as Siemens, which already has an experienced sales force and infrastructure, rather than spend its own money to build one itself from scratch. That would free up capital for further research and development, Smith explained. Wave Dispersion, meanwhile, would provide a defense integrator with a key component for a port defense contract. "It's a door-opener for them. Ports want to deal with a single supplier if possible."

Since Wave Dispersion is not hurting for capital, any partnership would be predicated on social factors. "Really the thing is finding a partner that fits with our personality and style," he said.

Resources:

Wave Dispersion Technologies - Investor Relations

Blog Tags: Mergers & Aquisitions, M&A, Private Equity, Venture Capital, Angel Investing, Angel Investor, Homeland Security Investment, Homeland Security, Maritime Security, Port Security, Merger Market, Wave Dispersion Technologies, Inc., Wave Dispersion Technologies, WhisprWave®