LONDON (Alliance News) - Global Invacom Group Ltd said Tuesday it plans to acquire US satellite terminal manufacturer Skyware Global Inc for up to USD11.6 million in cash and shares.
Global Invacom, which is dual listed on London's AIM Market and the Singapore Exchange, will issue around USD6.6 million in shares, or 28.0 million shares based on a volume weighted average price of USD0.3185. This is equivalent to a 9.95% interest in Global Invacom.
It also will enter into an earn-out agreement with the sellers of Skyware for a maximum of up to USD5.0 million, which will be payable in cash funded from Global Invacom's internal resources.
Skyware posted revenue of USD52 million in 2015. Following the acquisition, Global Invacom said it plans to improve Skyware's internal efficiencies, and said it is confident it can return Skyware to profitability through integration synergies, cost savings and cross selling.
"The acquisition not only strengthens our presence in the US, but also complements our existing international footprint by bringing a new suite of products and expertise to address the global demand for Internet connectivity. The transaction demonstrates our commitment to grow the business through strategic acquisitions," said Executive Chairman of Global Invacom Tony Taylor in a statement.
Shares in Global Invacom are untraded Tuesday morning. It last closed at 17.00 pence.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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