Satelinx International Inc. and Virtual Wave Inc., both providers of GPS tracking and location-based services, announced Aug. 1 they signed a letter of intent to merge in an all-stock transaction.

The aggregate revenue of the combined company is expected to be approximately $50 million for fiscal year 2006. The transaction is expected to close in the fourth quarter 2005.

“The new Satelinx will bring balance to this growing GPS industry by providing a combined supplier and a new research and development component to meet the needs of both the security industry and to fleet management,” Sam Grinfeld, chairman and CEO of Satelinx, said in a statement.