TechMARK movers: Vislink's cash pile

Vislink is selling its CCTV business Hernis for £32.5m, which is more than the broadcast technology supplier's market value prior to the announcement. Hernis specialises in supplying CCTV to the oil and gas sector. It made an operating profit of £4.6m in 2009. Cooper Industries is paying £32.5m and Vislink is also retaining £6m of cash in the bank. Vislink is also selling Western Technical Services, which should bring in more than £2.5m early next year. Vislink had net debt of £5.6m at the end of September 2010, although that includes the £6m in cash that Hernis has. This suggests that Vislink has pro forma net cash of nearly £27m before the Western Technical Services sale. Vislink has already identified how it can spend some of the cash. Early next year, it hopes to complete the purchase of broadcast technology rival Gigawave for up to £5.75m - the initial payment will be £1.75m There are signs of recovery in Vislink's core markets but trading is still well down on last year. Orders are expected but they may not contribute until next year. Manufacturing is being transferred to Asia. There has been a negative reaction to BTG's proposed shares and cash acquisition of Biocompatibles International, although the share price of the target is well ahead on the day. BTG is offering 1.6733 BTG shares and 10p in cash for each Biocompatibles share. Even though the BTG share price has fallen, Biocompatibles is still trading at nearly 10p below the value of the bid. There is an alternative to the 10p a share cash part of the bid. Shareholders can elect to receive €0.56 a share out of a €25m milestone payment if AstraZeneca exercises its option over Biocompatibles's GLP-1 compound, currently in Phase I clinical trials.According to FinnCap, the combined business will have annual revenues of £125m and cash of £113m. There should be some cost savings from combining the two businesses - possibly as much as £3m a year according to Daniel Stewart. BTG will help to accelerate the development of Biocompatible's oncology products. FTSE TechMARK - RisersVislink (VLK) 24.00p +29.73%Biocompatibles International (BII) 390.00p +15.90%NXT (NTX) 3.88p +3.47%Kofax (KFX) 275.00p +2.61%Renovo Group (RNVO) 35.00p +2.19%Imagination Technologies Group (IMG) 324.00p +2.11%ARM Holdings (ARM) 377.30p +1.81%Dialight (DIA) 445.00p +1.71%Autonomy Corporation (AU.) 1,421.00p +1.57%RM (RM.) 150.00p +1.35%FTSE TechMARK - FallersAntisoma (ASM) 6.10p -6.15%BTG (BGC) 232.50p -7.37%Computacenter (CCC) 358.60p -3.83%Pace (PIC) 190.00p -3.21%Phytopharm (PYM) 7.90p -2.83%Sinclair Pharma (SPH) 30.75p -2.38%Filtronic (FTC) 35.75p -2.05%Corin Group (CRG) 48.25p -2.03%Axis-Shield (ASD) 245.25p -1.90%Innovation Group (TIG) 13.00p -1.89%