Coyote to Take Controlling Interest in Italian Firm

Coyote Network Systems in Westlake Village has agreed to acquire a controlling interest in Systeam S.p.A.

Coyote will increase its equity position to 60% from 9% for about $5 million and 880,000 unregistered shares of Coyote common stock. Italy-based Systeam develops voice, data, video and Internet products.

Coyote provides telecom equipment and international long-distance services.

“With European telecom markets in the early stages of privatization, Systeam is well-positioned to capitalize on that growth and can expand the markets for Coyote products,” said James J. Fiedler, Coyote chairman and CEO.

Since 1989, Systeam has been serving European governments with specialized information technologies, including anti-fraud/anti-cloning cellular software that can control and verify more than 30 million telephone calls daily. Its customers include Telecom Italia, Siemens, Ericsson, Stream, Telesoft and Saritel.

As part of the Systeam acquisition, Coyote also will acquire an indirect controlling interest in Smartech, an information technology-consulting firm that provides software for telecom, financial service and utility companies. Smartech is 51% owned by Systeam.