19 Aug 2015 10:00
19 August 2015
Global Invacom Group Limited
Shareholders of SGX And U.K. AIM Listed Global Invacom Approve Largest-Ever Acquisition Of Leading U.S. Satellite Manufacturer, Skyware Global
SGX and U.K. AIM Listed Global Invacom Group Limited ("Global Invacom" or "the Group") announces that its shareholders approved today the acquisition of Skyware Global ("Skyware"), a leading U.S. manufacturer of satellite terminals for up to US$11.6 million in shares and cash (the "Acquisition").
Following the Group's announcement on 02 June 2015, shareholders of Global Invacom at an Extraordinary General Meeting ("EGM") in Singapore, held earlier today, approved all resolutions to give effect to the Acquisition of North Carolina-based Skyware, a leader in developing, designing and manufacturing Very Small Aperture Terminals ("VSAT") covering C-band, Ku-band and the emerging Ka-band frequency platforms.
The Group expects the Acquisition to be completed during the week commencing 24 August 2015, at which time, Mr Gregory K Jones, partner of Edgewater Growth Capital Partners II, L.P. ("Edgewater"), beneficial owner of Skyware, will join the Global Invacom board of directors.
Under the terms of the Acquisition, Global Invacom will issue 27,957,828 treasury shares worth approximately US$6.6 million to Skyware's owners, Satellite Holdings LLC, based on a volume-weighted average price ("VWAP") of US$0.2362 (S$0.3185) on 29 May 2015.
The Group will enter into an earn-out model with Satellite Holdings LLC of an amount equivalent to approximately 0.5554 times of revenue in excess of US$52.3 million, up to a maximum earn-out of US$5.0 million, during the period 1 June 2015 to 31 May 2016.
The transaction will position the enlarged Group as a global leader in satellite communications ("Sat Comms") equipment, adding a U.S. manufacturing presence to its existing Sat Comms production in Asia and Europe.
It will also allow Global Invacom to expand its suite of technological capabilities, extend its geographical reach and gain access to further global broadcasters. Global Invacom will also add a U.S. manufacturing presence to its existing Sat Comms production in Asia and Europe.
Upon completion of the Acquisition, Global Invacom will be the world's only full-service outdoor unit supplier, providing an extensive portfolio of products from antennas and electronics to accessories.
Global Invacom will seek to improve Skyware's internal efficiencies by consolidating existing logistics and warehouse functions at the North Carolina plant, at a time when a major customer is due to launch two new satellites in 2016.
Mr. Tony Taylor, Executive Chairman of Global Invacom, said, "We thank shareholders for their support of the Skyware acquisition which will offer significant synergies to strengthen our global leadership in the Sat Comms equipment market."
Upon completion of the Acquisition, the financial results of Skyware will be consolidated with Global Invacom, and will contribute to the Group's' financial performance.
EGM and Investor presentation slides are available on the Group website: http://www.globalinvacom.com/announcements.html
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 United Kingdom +44 203 053 3523 |
On behalf of Global Invacom Group Limited:
finnCap Ltd (Nominated Adviser and Joint Broker)
Christopher Raggett / Simon Hicks (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
+44 203 772 2500
WeR1 Consultants Pte Ltd (Singapore Financial PR)
Sheryl Sim, sheryl@wer1.net
Ian Lau, ianlau@wer1.net
+65 6737 4844
About Global Invacom Group Limited
Global Invacom Group Limited ("Global Invacom") 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 six manufacturing plants across China, Israel, Malaysia and the U.K., providing a full range of dish antennas, 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 visit: www.globalinvacom.com
About Skyware Global
Skyware Global ("Skyware"), headquartered in North Carolina, is one of the leading U.S. design manufacturers of antenna systems and satellite broadband technology. Its business sits within the consistently expanding Sat Comms industry, backed by the rapid growth of the global satellite pay-TV industry.
The business offers a large portfolio and back catalogue of antennas, dishes and accessories in all operating bands, and is the leading supplier of high volume Direct-To-Home terminals, KA Broadband terminals and Enterprise VSAT terminals from 60cm to 2.4m. Skyware is underpinned by a leading U.S. based engineering development team providing advanced R&D capabilities, and operates both a specialist regional and global sales force.
For more information please visit: www.skywareglobal.com.