Satcoms service provider Norsat International has acquired RF antenna Sinclair Technologies developer for US$19.25m.
Norsat will finance the transaction with US$4.75m in cash, US$12m via a new debt facility from its principal banker and almost 4.03…
Satcoms service provider Norsat International has acquired RF antenna Sinclair Technologies developer for US$19.25m.
Norsat will finance the transaction with US$4.75m in cash, US$12m via a new debt facility from its principal banker and almost 4.03 million common shares issued from treasury.
Of the purchase price, the majority will be paid upfront with the remaining portion being held in escrow and earned out over a period of two years, including the common shares. The acquisition is anticipated to close later this month.
Founded in 1951, Sinclair develops antenna and RF conditioning products, systems and coverage solutions for public safety, defense and private wireless networks. The company has offices in Canada, the United States and the United Kingdom and approximately 100 employees.
For the fiscal year ended September 30, 2010, Sinclair reported revenues of C$20.1m and EBITDA of C$3.1m, giving the purchase an acquisition multiple of 6.2 times. In the last three years Sinclair’s compound annual growth rate (CAGR) for revenues was 13% and the CAGR for EBITDA was 26%.
Dr. Amiee Chan, president and CEO of Norsat, stated: “This is an exciting day for Norsat shareholders as this acquisition will bolster our revenue base and is expected to be immediately accretive to earnings. Sinclair has experienced rapid growth in the past several years and is expected to continue to grow, which will act as a catalyst for upside potential to this transaction.
“The acquisition of Sinclair is a perfect complement to our core businesses and keeps to the focal point of our mission of becoming a premier provider of broadband communications solutions for remote and austere regions. In addition, Sinclair will help diversify our markets into the commercial space and into the municipal government level.” Calven Iwata, president and CEO of Sinclair, said: “We are pleased in joining forces with Norsat which provides us with increased market penetration, especially in the military arena, as well as other synergistic capabilities like combined R&D efforts in other wireless products. This transaction is a good cultural fit as we’ll retain the Sinclair brand, which is well known in our industry.” Jove Capital acted as advisor for Sinclair on this transaction.
