Business
Sale of Clear-Com Business
Sale of Clear-Com Business.
About this update from Videndum Plc
[{"type":"text","content":"\n RNS Number : 6994J The Vitec Group PLC 06 April 2010 \n \n\n \n \n6 April 2010\n \nThe Vitec Group plc\n \nSale of Clear-Com Business\n \nVitec Group, the international provider of products and services for the broadcast, photographic, and MAG (military, aerospace and government) markets, announces that it has entered into an unconditional agreement to sell its Clear-Com business, comprising the shares of Vitec Group Communications Ltd and of Clear-Com Research Inc and its membership interest in Vitec Group Communications LLC (together \"Clear-Com\") to HM Electronics, Inc for a total cash consideration of up to £8.7 million. \n \nClear-Com manufactures a range of wired and wireless intercommunications products, including both party-line and digital matrix systems, for use predominantly in the broadcast and entertainment markets. It has operations in San Francisco, USA; Cambridge, UK; and Montreal, Canada. \n \nVitec Group's purpose is to provide vital products and services that support the capture of exceptional images. As Clear-Com's business is involved in the transmission of voice signals, it is not considered central to Vitec Group's ongoing strategy. HM Electronics, Inc will provide a good strategic home for Clear-Com's ongoing development.\n \nFor the year ended 31 December 2009, Clear-Com incurred an operating loss before tax of £3.5 million on turnover of £22.3 million. Gross assets at 31 December 2009 were £8.9 million. \n \nConsideration of £8.0 million will be paid in cash at completion. It is subject to post-closing adjustments for changes in working capital. There is a further potential consideration of up to £0.7 million in 2011 based on the actual turnover achieved during 2010. \n \nReceipts from the sale will be used to pay down borrowings and to facilitate Vitec Group's future business initiatives. \n \nThe Clear-Com management team will transfer with the business.\n \n \nCommenting on the disposal, Stephen Bird, Group Chief Executive of Vitec, said: \n \n\"We are pleased to have secured the sale of this business to a leading manufacturer of wireless audio equipment. This represents a further step in our strategic direction announced last yea...