Acquisition

21 Jun 2006 07:02

BATM Advanced Communications Ld21 June 2006 For immediate release 21 June 2006 BATM Advanced Communications Limited Acquisition of the business and assets of Metrobility Optical Systems Inc LONDON - BATM Advanced Communications Ltd ("BATM") announces that it has agreedto acquire the business and assets of Metrobility Optical Systems Inc("Metrobility") for a total consideration of $6.85 million payable in cash overthe next two years. $3.15 million will be paid upon closing, which is expectedby 15 July 2006, an additional $1.9 million will be paid 12 months after closingand $1.8 million at the end of the second year after closing. Metrobility, headquartered in Merrimack, New Hampshire, is a privately heldcompany that develops, manufactures and markets optical Ethernet equipmentfocused on accelerating the deployment of carrier-class Ethernet services tobusiness users. The acquisition of Metrobility will strengthen BATM's sales anddistribution channels within the US and South American markets. In addition, theproducts offered by Metrobility are complementary with the existing BATM'sEthernet access product range. In the last financial year to 31 December 2005, the Metrobility business andassets being acquired generated revenue of US$11.8 million and a loss beforetaxes of US$1.2 million. Following the rapid integration of Metrobility withTelco Systems, it is expected that the integration will have a positivecontribution to Telco Systems' business going forward. The gross assets beingacquired were valued at approximately US$3.9 million as at 31 December 2005. Commenting on the acquisition, Dr. Zvi Marom, CEO of BATM, said:"We are delighted to welcome the Metrobility team to BATM. Their products andcustomer base complements Telco Systems' offerings in the US. We look forward tocompleting the integration as soon as possible." Enquiries:BATM Advanced Communications + 972 9866 2525Zvi Marom, Chief Executive Threadneedle Communications 020 7936 9605Graham Herring About BATM Advanced CommunicationsBATM is a world leader in the design and supply of IP packet-based systems suchas high-capacity, self-routing switches with extensive QoS capabilities. Formore information, visit the BATM Advanced Communications web site atwww.batm.com Telco Systems is a wholly owned subsidiary of BATM Advanced Communications Basedin Foxboro, Massachusetts; the company provides industry-leading networkingsolutions to the carrier and enterprise markets. Telco Systems' focus is tomaximize the power of customers' networks by integrating transport, access, andpacket technologies onto industry-leading platforms, therefore fully meetingtoday's and tomorrow's network requirements. For more information, visit theTelco Systems web site at www.telco.com This information is provided by RNS The company news service from the London Stock Exchange