PDV Raises $218M, Will Launch 2-Way Radio Network
Pacific DataVision Inc. said on Tuesday that part of the $218 million in equity funding it recently
raised will go toward the purchase of Sprint Corp.'s spectrum licenses, as PDV works to launch a
two-way radio network for businesses.
PDV, which is run by the co-founders of Nextel Communications Inc., said it has agreed to buy all six
of Sprint's 900-megahertz spectrum licenses. According to a Tuesday press release from PDV, upon
the completion of the deal with Sprint, it will focus on developing a walkie-talkie-style service for
small and medium-size businesses.
The Paterson, New Jersey-headquartered company said it has already received approval for the
service â which will be offered primarily through Motorola Solutions Inc.'s authorized dealer
network â from the Federal Communications Commission.
"With the availability of Motorola Solutions' digital radio technology, we see an opportunity to
incorporate PDV's proprietary cloud-based mobile resource management solutions into a next
generation offering for businesses," Brian McAuley, chairman of PDV and one of Nextel's co-
founders, said in a statement on Tuesday. "These solutions increase productivity through the
delivery of real-time information from and about mobile workers to their managers."
Motorola Solutions will lease a portion of the spectrum from an undisclosed PDV subsidiary, PDV
Morgan O'Brien, who serves as PDV's vice chairman and who co-founded Nextel with McAuley,
echoed the sentiments of his colleague in a Tuesday statement of his own.
"By acquiring Sprint's nationwide spectrum at 900MHz, we take on the challenge of making the
most efficient use of that spectrum," O'Brien said. "The selection of Motorola Solutions' digital radio
technology is the first step in that process. We will continue to explore ways to further improve
John C. Pescatore, CEO of PDV, praised his "extraordinarily talented team of telecommunications
industry veterans," in a statement, saying that they have helped propel PDV to be positioned to
create the "largest private push-to-talk network in major markets throughout the United States."
PDV paid Sprint for its spectrum licenses in the form of $10 million worth of PDV common stock. The
company said it recently raised more than $218 million in equity funding in a private placement with
FBR Capital Markets & Co. acted as the sole initial purchaser and placement agent. The identities of
the rest of the investors were not disclosed.
McAuley and O'Brien co-founded Nextel, which was originally known as FleetCall, in 1987. In the
early 2000s, Nextel â which in 2005 would merge with Sprint â made a name for itself with the
introduction of push-to-talk technology that enabled its cellphones to be used as high-tech walkie-
PDV â which in addition to its planned Nextel-esque two-way radio network develops mobile
workforce communications and management solutions and provides customers with voice and photo
documentation, GPS tracking and cloud-based management tools â was born in 1998.
Representatives for Sprint and Motorola did not immediately respond to requests for comment on
Source -Â http://www.law360.com/articles/578220/pdv-raises-218m-will-launch-2-way-radio-network