MERGERS/ACQUISITIONS

JVCKENWOOD Agrees To Buy ESChat

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JVCKENWOOD agrees to acquire push-to-talk-over-cellular (PTToC) provider ESChat in a deal that could close by the end of March 2026

By Donny Jackson, Editor, Urgent Communications

JVCKENWOOD has announced an agreement to acquire ESChat, a leading US push-to-talk-over-cellular (PTToC) provider in a deal that could be completed by the end of March 2026.

Technically, the agreement calls for Japan-based JVCKENWOOD Corp.—the parent company of the LMR manufacturer that provides JVCKENWOOD and EF Johnson branded solutions in the U.S.—to acquire 100% of the shares in San Luis Aviation, the privately owned company based in California that does business as ESChat. ESChat has more than 700,000 users worldwide and is the only broadband PTT service that has received FedRAMP authorization—a distinction the company received in August for its ESChat for Government offering.

JVCKENWOOD plans to integrate ESChat’s secure broadband PTT service into the LMR manufacturer’s existing offerings, according to the JVCKENWOOD press release about the agreement.

“Through the share acquisition, JVCKENWOOD will expand its wireless product portfolio by integrating the ESChat secure broadband PTT service—which uses wireless broadband communication networks such as 4G, 5G, satellite and Wi-Fi—into the group’s products and service lineup,” the press release states.

“By strengthening its presence in broadband PTT communications, focusing on the key North American public safety sector, JVCKENWOOD will accelerate medium- to long-term growth in the Safety & Security (S&S) Sector.”

JVCKENWOOD Corp. President and CEO Shoichiro Eguchi—who also serves as the representative director of the company’s board—expressed optimism about the proposed acquisition of ESChat, which counts the US Drug Enforcement Administration (DEA) among its federal customers.

“It is our great pleasure to welcome SLA as a new member of the JVCKENWOOD Group,” Eguchi said in a prepared statement. “This share acquisition represents one of the key initiatives to further accelerate our Communications Systems Business, a core driver of the company’s growth. We will strengthen our broadband PTT service, focused on the North American public-safety market, and contribute to creating safe and secure communities by responding to the diverse needs of our customers.

“Through this share acquisition, we will accelerate our growth toward realizing our corporate philosophy of ‘Creating excitement and peace of mind for people of the world,’ while continuing to strive to maximize corporate value.”

ESChat President and CEO Josh Lober noted that ESChat and JVCKENWOOD “have long shared a strong business relationship,” making the proposed acquisition a logical step.

“Together, we [ESChat and JVCKENWOOD] have partnered to create effective communication solutions,” Lober said in a prepared statement. “Separately, our companies have developed highly synergistic products and services, thus making the decision for ESChat to join the JVCKENWOOD family an easy one.

 “Together with the JVCKENWOOD team, we will continue to raise the bar for mission-critical broadband and hybrid LMR-PTT solutions and expand our customer base, both domestically and abroad. The entire leadership team at ESChat is committed to ensuring a successful transition and is looking forward to continuing our tenure with the company.”

ESChat’s over-the-top PTT solution has gained significant market traction during the past two decades by providing a service that provides strong audio quality and flexible interoperability—supporting communications with both LMR and broadband services—at an affordable price when operating on a reliable broadband connection.

Critics of the company have focused on the fact that ESChat’s technology is proprietary—as opposed to a 3GPP standard like mission-critical push to talk (MCPTT)—although ESChat has been significantly more interoperable than MCPTT offerings have been in the U.S. to date.

While the JVCKENWOOD press release indicates that the Japan-based corporation hopes to complete the ESChat acquisition by the end of March 2026, it also includes a note that the target date could change based on the “review status of the application to the Committee on Foreign Investment in the United States (CFIUS).”

Financial terms of the deal were not disclosed, but the JVCKENWOOD press release indicated that all shares of ESChat are held by Lober and “five other officers and employees of the company.”

If the proposed deal is completed, ESChat would be a wholly owned subsidiary of JVCKENWOOD.

“By making ESChat a wholly-owned subsidiary, JVCKENWOOD will incorporate ESChat technology into its product lineup alongside its existing wireless devices and systems, strengthening the ability to deliver one-stop solutions,” according to the JVCKENWOOD press release.

“This subsidiary acquisition is one of the key initiatives in the future growth strategy, aiming to expand orders in the North American public-safety sector and contribute to building safe and secure communities by ensuring communication across various environments.”

https://urgentcomm.com

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