LONDON (Alliance News) - Critical communications services company Sepura PLC on Friday said it has entered into a conditional deal to acquire wireless communications company Teltronic SAU for EUR127.5 million, to be funded by both its existing debt and by a share placing.
Sepura said the consideration will be part-funded by a partial drawdown of its existing EUR120 million debt facilities, with the company also to launch a placing of 37.4 million shares and a placing and open offer of a further 9.1 million shares, all at 130 pence, in order to raise GBP56.9 million net of expenses. Shares in Sepura closed at 131 pence on Thursday.
The deal will boost Sepura's presence in critical communication services and will strengthen its position in the US and Latin American markets. It expects the deal to be immediately earnings accretive, with a significant boost in the first full year of ownership.
Sepura said the deal also increases its scale, allowing it to deliver larger projects, and boosts its earnings visibility.
"This is a highly complementary and transformational acquisition which will be immediately earnings enhancing. It brings together two of the market's growing players, to create a market leading digital Professional Mobile Radio company, with a broader offering and significantly enhanced capabilities," said Sepura Chief Executive Gordon Watling.
decided to suspend temporarily the previously announced buy-back programme as of today until the completion of the proposed acquisition. Accordingly the buyback instructions that were issued to the Company's corporate broker, Liberum Capital Limited, on 29 September 2014 will be suspended until further notice.
Separately, Sepura said the stock buy-back programme it had started in October 2014 has been suspended until the acquisition has been completed. It said it has purchased 1.4 million shares to date for GBP2.0 million, with the shares placed in treasury.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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