DGS Announces Strategic Relationship with LGS Innovations

Jul 29, 2015

Digital Global Systems Inc. Announces $4 Million Capital Raise and Strategic Relationship with LGS Innovations
July 28, 2015 10:03 AM Eastern Daylight Time
BELTSVILLE, Md.–(BUSINESS WIRE)–Digital Global Systems Inc. (DGS), a provider of innovative broad spectrum management technology for public safety, enterprise, telecommunications and government customers, announced it has raised an additional $4 million of funding through the issuance of Series A-2 convertible preferred stock.

“We believe a strategic business relationship with DGS can help deliver an enhanced solution to address all of these client needs.”

The funding round included investments by LGS Innovations (LGS) and CoVant, as well as a broad representation of existing and new individual investors. The capital raised in its Series A-2 round is in addition to the $2 million of Series A and $2.25 million of Series A-1 convertible preferred stock previously issued. This brings the total capital raised through convertible preferred Series A Rounds to $8,250,000.

The funds will be used to accelerate the company’s continued market expansion and development of its flagship SigBase™ platform, which combines broad spectrum data capture with remote access and analytics capabilities so users can more efficiently monitor, manage and optimize their spectrum assets and wireless communications.

The DGS SigBase software utilizes Fast Fourier Transforms (FFTs) for signal analysis and signal classification. Although I/Q data is utilized in certain operations performed on the system, utilization of FFTs for analysis allows for improved processing speeds and optimized performance. Utilization of FFT scanning versus traditional sweeping also enables transient signals to be captured efficiently over wider spans.

The software package also includes modulation detection, channel conflict detection with alarm and trigger features, and patented features such as automatic signal detection, connect anywhere functionality, FCC database analytics and spectral environment learning . When engaged, the spectral environment learning function enables an operator to build a signal inventory for a specific environment.

DGS delivers its distinctive SigBase software platform on portable, mobile, and fixed hardware platforms, which are all remotely accessible and network enabled.

“In addition, DGS is rolling out our SigDB solution, a cloud-based data analytics platform where users have the ability to store, access, and analyze data from all deployed SigBase devices in their network,” said Fernando Murias, Chairman and CEO of DGS.

In its first two years of operations, DGS already has 20 issued U.S. patents, market traction into the four major tier 1 carriers, and growing presence in the transportation, public safety and federal government markets. In addition to the capital investment mentioned above, LGS and DGS are already teaming on a number of strategic business opportunities.

“DGS has been actively searching for the right strategic partner to help us expand our unique solutions into the federal government sector,” said Murias. “Teaming with LGS and leveraging the extensive experience they have in working with the federal markets is key for us.”

LGS provides secure networking, communications, VoIP, optical routers, and other solutions for the U.S. national security, defense, and advanced research communities.

“More effective management of limited spectrum resources has been a challenge for our federal customers for many years and has become a significant issue for commercial users as well,” said Kevin Kelly, LGS Chief Executive Officer. “We believe a strategic business relationship with DGS can help deliver an enhanced solution to address all of these client needs.”

Formerly a subsidiary of Alcatel-Lucent, LGS Innovations was purchased by CoVant Technologies II in 2014. Based in Herndon, Va., LGS and its legacy companies have a 75-year history of supporting government and commercial organizations worldwide in the research, development, and deployment of networking solutions. DGS will team with LGS’ Engineering Integration Services (EIS) and Advanced Research & Technology (ART) groups to deliver broader technology solutions to the market.

“We’re excited to have a teaming partner with such vast strategic experience in the broader government market,” said Murias.

CoVant Chairman and CEO Joseph Kampf said, “We are pleased to be supporting both DGS and LGS as they work together on the next generation of critically important spectrum management tools.”