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TeleCommunication Systems, Inc. (NasdaqGM: TSYS)  Swinging for the Fences.

Once upon a time there was a struggling little government contractor in Annapolis, headed by a larger-than-life Naval Academy officer who had to be out of his depth thinking that he could convert his modest foothold in the government market into a major public company.  I guess the lesson is always, always to never bet against the U.S. Navy.  There have been fits and starts, but Maurice Tosé’s company  has positioned itself in the thick of wireless communication services and is on the verge of climbing to yet another plateau.  It is not enough that the company’s stock has tripled over the last five years and that the little Annapolis company now has a profitable market cap of over $450 million.  Something is stirring over there.  In early November, the company closed on the purchase of Baltimore-based Solvern, a DoD security related company with an $18 million revenue run rate.  Not two weeks later, the company announced that it had acquired Sidreal, which provides field service support for satellite communications and other IT work and has a revenue run rate of $24 million.   Then in December, the company announced and completed the major purchase of Networks in Motion, a provider of mobile GPS solutions, for $170 million.  Finally, in November, the company also sold $104 million of convertible senior notes to institutional buyers, obviously to help fund all of this activity.  I am reminded of the old maxim that ‘if you are standing still, you are falling behind.’  TCS reminds me of another Maryland company FTI Consulting when it decided to take its game to a whole new level through acquisitions.

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