11 Nov 2014 07:08
Global Invacom Acquires Israel-Based Satellite Equipment Specialist for US$3.5M; Gains New Technologies, Broadcaster Relationships & Enters New Markets
Singapore, 11 November 2014 - Global Invacom Group Limited ("Global Invacom" or "the Group") announced today the completion of its acquisition of Israel-based OnePath Networks Ltd ("OnePath") for US$3.5 million that allows it to gain new technologies, expand market reach and grow its network of broadcasters.
The SGX Mainboard and U.K. AIM-listed satellite communications ("Sat Comms") equipment specialist satisfied the cash consideration from the US$15.0 million gross proceeds raised from its AIM placing completed on 2 July 2014.
OnePath (trading as "Foxcom") - one of the pioneers in Radio Frequency ("RF") over fibre technology - provides products and services to major satellite operators, teleports and broadcasters in over 35 countries. Its extensive product applications range from in-building wireless coverage, multi-family housing TV distribution and Distributed Antenna Systems ("DAS") to satellite ground station connectivity.
Leveraging on Foxcom's U.S.-based sales team, its customer base in North and South America and its network in the military sector, Global Invacom will expand its footprint in existing and new geographies while entering new product markets as demand for Sat Comms equipment grows.
The acquisition produces clear synergies in terms of technology transfer, research-driven product development and regional expansion through a stronger sales network, enhancing Global Invacom's position as a leading Sat Comms player.
The net tangible asset value of Foxcom as at 30 June 2014 was approximately US$3.4 million, with an annual turnover of approximately US$5.0 million and strong gross profit margins. This transaction is in line with the Group's track record of driving growth via complementary acquisitions.
Commenting on the acquisition, Tony Taylor, CEO of Global Invacom, said: "Foxcom adds a strong suite of complimentary capabilities which will enhance our value proposition as an integrated Sat Comms equipment designer and manufacturer, and will open up a new range of global customers. I am delighted to welcome the Foxcom team into the Group."
Global Invacom has commenced the integration of Foxcom, which will continue to maintain its presence in Israel.
Further disclosures regarding the Acquisition
The Acquisition took place on 10 November 2014 and OnePath Networks Ltd has become a wholly-owned subsidiary of Global Invacom Holdings Limited, which is a wholly-owned subsidiary of the Company.
The consideration for the Acquisition was fully satisfied by way of the sum of US$3,500,000 (the "Consideration") paid in cash on completion under the understanding and agreement that US$500,000 of the Consideration shall be withheld by an escrow agent until 30 November 2015 as security for certain indemnity claims under the share purchase agreement.
The Consideration was arrived at after arm's length negotiations, on a "willing buyer willing seller" basis, taking into account the net asset value together with historical and projected earnings.
The net tangible asset value of OnePath Networks Ltd as at 30 June 2014 was approximately US$3,402,000.
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For media queries, please contact
Matthew Garner
Chief Financial Officer
Global Invacom Group Limited
8 Temasek Boulevard #20-03 Suntec Tower Three Singapore 038988 +65 6884 3423 | Freeman House John Roberts Business Park Canterbury CT5 3BJ +44 203 053 3523 |
On behalf of Global Invacom Group Limited:
WeR1 Consultants Pte Ltd (Singapore Financial PR)
Sheryl Sim, sheryl@wer1.net
Ian Lau, ianlau@wer1.net
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finnCap Ltd (Nominated Adviser and Joint Broker)
Ed Frisby / Christopher Raggett (Corporate Finance)
Rhys Williams (Corporate Broking and Sales)
+44 207 220 0500
Mirabaud Securities LLP (Joint Broker)
Peter Krens (Equity Capital Markets)
+44 207 878 3362
Bell Pottinger LLP (UK Financial PR)
David Rydell / David Bass / Lucy Stewart
+44 207 861 3232
About Global Invacom Group Limited
Global Invacom Group Limited is listed on the Singapore Exchange Securities Trading Limited Mainboard ("SGX-ST") and its shares are admitted to trading on the AIM Market of the London Stock Exchange in the U.K..
Global Invacom is a fully integrated satellite equipment provider with five manufacturing plants across China, Malaysia and the U.K., providing a full range of LNB receivers, transmitters, switches and video distribution components and electronics manufacturing services in satellite communications, TV peripherals, computer peripherals, medical, and consumer electronics industries. Its customers include satellite broadcasters such as BSkyB of the U.K. and DISH Network of the U.S.A..
For more information please refer to http://www.globalinvacom.com
About Foxcom
Since 1993, Foxcom has been recognised as a leading manufacturer of advanced RF over Fibre Solutions for the commercial, government and military markets. Its capabilities cover DC to 15GHz, delivering unprecedented performance, which makes Foxcom a supplier of choice for leading satellite operators, broadcasters, integrators and broadband service providers.
Building on its strong technological foundation of optical broadband solutions, Foxcom is an industry leader in product quality, reliability and customer satisfaction. Foxcom's RF/optical product lines are designed to meet the needs of four different market segments: Satellite Communications, Multi-Family Housing TV Distribution, In-building Wireless Coverage Solutions and Military Satellite Solutions.
For more information please refer to http://www.foxcom.com