Business
Acquisition
Acquisition.
About this update from Filtronic Plc
[{"type":"text","content":"\n RNS Number : 2117Q Filtronic PLC 30 July 2010 \n \n\nFiltronic plc \n(\"Filtronic\" or the \"Company\")\n \nProposed acquisition of Wireless Infrastructure Business of Isotek\n \nFiltronic, the designer and manufacturer of microwave electronics products for the wireless telecoms backhaul infrastructure market, is pleased to announce that it has today entered into an agreement (\"Agreement\") governing the terms of the proposed offer for the entire issued share capital of Isotek (Holdings) Limited (\"Isotek\")(\"Acquisition\"). Isotek develops and markets leading-edge telecommunications products for a range of wireless infrastructure applications.\n \nThe Acquisition, which will be made by way of offer under Part 28 of the Companies Act 2006 (\"Offer\"), has highlights as follows: \n \nStrategic\n· Furthers Filtronic's strategy to create a differentiated, high growth, wireless business through organic growth and selective acquisition\n· Provides entry to customised niche market for high added value base station filters \n· Offers identified growth potential to transform the scale of Filtronic's business\n· Acquires innovative new IP to capitalise on very strong growth of 3G/4G related mobile data traffic\n· Creates a combined business of attractive scale to key customers\n \nFinancial\n· Deal expected to be earnings enhancing in year to 31 May 2012 (\"FY12\") \n· Expected to increase FY12 turnover by circa £15m\n· Consideration of £4.35 million cash plus 18,550,000 new Filtronic shares (subject to working capital and other adjustments) \n· £10.7 million implied consideration based on closing price of 34.25p at 29 July 2010\n· Shares represent circa 20 per cent of enlarged share capital, and will be subject to lock-ins\n \nChairman Howard Ford said \"This is a transformational deal for both companies which will be attractive to all stakeholders.\"\n \nEnquiries:\n \n\n\n\n\nFiltronic plc\n\n\nTel. 01325 301111\n\n\n\n\nHoward Ford, Chairman \n\n\n\n\n\n\n\nHemant Mardia, CEO\n\n\n\n\n\n\n\nMike Brennan, CFO\n\n\n\n\n\n\n\n\n\n\n\n\n\n\...