Sepura acquires 3T communications
May 16, 2012 (Datamonitor Financial Deals Tracker via COMTEX) --
Sepura PLC, a UK-based designer, manufacturer and supplier of Terrestrial Trunked Radio (TETRA) terminals, has acquired 3T Communications AG, an Austria-based supplier of small to mid-size TETRA networks, for initial cash consideration of EUR8 million with further contingent consideration of up to EUR5 million payable dependent on 3T achieving cash EBITDA targets over an earn-out period.
The acquisition is on a cash-free and debt-free basis and will be funded from existing cash reserves and partial use of previously undrawn debt facility with Barclays and up to EUR1 million of the deferred consideration payable in shares in the company.
3T generated revenues of EUR12 million for the year ended December 31, 2011, with adjusted EBITDA of EUR1.3 million and profit before tax of EUR0.4 million.
Deal Value (US$ Million) 16.65
Deal Type Acquisition
Sub-Category Majority Acquisition
Deal Status Completed: 2012-05-16
Target (Company) 3T Communications AG
Acquirer (Company) Sepura Limited
The combination of Sepura's market radio portfolio with 3T's infrastructure offering enables customers to procure an entire critical communications solution from a single supplier.
3T's current revenue is derived primarily from Europe, giving the opportunity to generate significant incremental revenue by offering 3T's products through the company's worldwide routes to market. Sepura also expect to realize cost synergies through a combination of engineering design improvements, improved supply chain management and the elimination of duplicate engineering, marketing and administrative expenses.
The transaction significantly increased the market opportunity for Sepura and enhanced its competitive position.
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