Last checked at 3 Jun 2011 07:00
Vislink plc
Acquisition of Gigawave Limited
3 June 2011
Vislink plc (the "Group"), the global technology business specialising in secure communications products and services for the news & entertainment and law enforcement & public safety markets, today announces that on 2 June 2011 it acquired the entire issued share capital of Gigawave Limited ("Gigawave") for a cash consideration of £3.75 million (the "Acquisition").
Based in Colchester, Essex, Gigawave is privately owned by a number of individual shareholders and employs 87 people. Gigawave is a leading designer, manufacturer and supplier of wireless camera, microwave and antenna products for the broadcast market. Gigawave has a particular strength in "on-board" applications for motorsport events around the world. Gigawave will complement and broaden the Groups capabilities in terms of engineering, product portfolio and geographic reach and will therefore strengthen the Groups position in its broadcast market.
Gigawave will be integrated into the Group's UK operations so as to realise the benefits expected from improved global distribution of all the Vislink brands and operational efficiencies. Gigawave's founder and existing Managing Director, Henry Barczynski, MM will serve the Group as Chief Marketing Officer reporting to the Chief Executive, John Hawkins.
For the financial year ended 30 April 2010, Gigawave generated audited sales of £12.53 million and a loss before tax of £0.97 million. As at 30 April 2010, Gigawave had audited gross assets of £5.32 million. For the year to 30 April 2011 Gigawave generated unaudited sales of £10.1 million, an unaudited loss before tax of £0.43 million and had unaudited gross assets of £4.87 million.
Under the terms of the Acquisition agreement, an initial consideration of £1.75 million was paid on completion on 2 June 2011. The Group also repaid shareholder loans of £0.4 million on completion. Deferred consideration of £1.0 million is payable on each of the first and second anniversary of completion. The initial consideration was paid in cash, financed out of the Group's existing cash balances. Deferred consideration will also be paid in cash. The Board expects the Acquisition to be earnings enhancing in its first full year (see note 1).
John Hawkins, Vislink's Chief Executive, commented on the acquisition:
"We are delighted to announce the acquisition of Gigawave, which will broaden our offering within the broadcast market. The Gigawave business and its management are well known to us and we look forward to the Gigawave and Vislink teams working together, sharing product developments, distribution and sales opportunities."
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For further information, please contact:
John Hawkins, Chairman and Chief Executive +44 (0) 14 88 68 55 00
James Trumper, Group Finance Director +44 (0) 14 88 68 55 00
Charlie Jack, Hudson Sandler +44 (0) 20 77 96 41 33
Note 1: This statement should not be taken to mean that earnings per share of Vislink plc will necessarily exceed or be lower than historic earnings per share of Vislink plc and no forecast is intended or implied.
About Vislink plc
The Vislink Group is strategically focussed on providing secure communication technologies to customers in its chosen markets. We specialise in wireless, video and IP technologies together with the supporting management systems. We have two international business units organised to serve its customers in News & Entertainment and Law Enforcement & Public Safety markets. With offices in the UK, USA, Dubai, and Singapore we employ over 200 people worldwide and have net assets in excess of £50 million. Our products include the design and manufacture of microwave radio, satellite transmission, wireless camera and marine CCTV systems; our manufacturing operations are in the UK and the USA.