Funkwerk Enterprise Communications GmbH (FEC), a subsidiary of Funkwerk AG, will be acquired by Teldat Group, a leading European technology company. The corresponding agreement was signed on October 18, 2011 and is subject to the customary contingent conditions. This move represents Funkwerk AG's next step in strategically repositioning the corporation and focusing on providing high added value services in the fields of Traffic & Control Communication, Security Communication and Automotive Communication.

Teldat S.A., headquartered in Madrid, Spain, is the central holding company which combines various divisions located around the globe. Teldat manufactures and markets innovative internetworking platforms for modern enterprise environments and is active in over 35 countries around the world. The Teldat Group has 600 employees and reported annual sales of € 45 million for 2010. The established telecommunications company has been active in the field for over 25 years, focusing on access technology for data, voice, and image transmission, IP telephony, and security applications for IP-based networks in the B2B and carrier/provider markets. With its acquisition of FEC GmbH, Teldat Group is significantly expanding its presence in the European market. With FEC, Teldat incorporates a leading German ICT manufacturer with a competitive product portfolio and direct access to key European markets through its regional offices in Germany, Austria, Italy, and France. The acquisition presents considerable opportunities both for Teldat and FEC, particularly in the realm of knowledge transfer and technology innovation. The synergies will enable the newly created company to expand its market share, product portfolios and enter new markets.

Hans-Peter Mistele, Director of Sales, Marketing, and Support at FEC, explains. "With the merger of Teldat and FEC, a powerful new European telecommunications provider has been created. As part of the Teldat Group, FEC will have considerably greater impact. That means we will continue to expand upon our strong position both in channel sales and with providers while providing our customers an even better product portfolio with improved services in the future."

Antonio Garcia Marcos, Teldat Group President, commented on the operation: "This merger brings significant opportunities to both companies, increasing our combined global footprint and presence in strategic markets and also reinforcing our capabilities in technology and product innovation. Teldat and FEC customers will benefit from the combined expertise, strive for innovation and our more complete product offering".