Canadian satcoms service provider Norsat International has said it is buying US$530,170 worth of assets and liabilities from an undisclosed US peer to widen its product portfolio.
The acquisition, which is being financed in cash from operations, enables…
Canadian satcoms service provider Norsat International has said it is buying US$530,170 worth of assets and liabilities from an undisclosed US peer to widen its product portfolio.
The acquisition, which is being financed in cash from operations, enables it to compete in new areas of the satcoms market with solid state power amplifiers, high power block up converters, satcom baseband kits, and microsatellite terminals.
CEO Amiee Chan said: “Strategically, this acquisition is consistent with Norsat’s ongoing growth strategy. Through it, we will broaden our portfolio of products and services, and the solutions we provide to customers.
“The expanded sales team and larger product range it brings will enable us to address new market opportunities in the US and around the world. Accordingly, we believe the acquisition will create strong value and has the potential to be accretive to shareholders.”
Chan declined to disclose the identity of the seller, but told SatelliteFinance that it planned to make two to four more acquisitions in the next three years.
Norsat began operating in 1977 based on a prototype satellite dish that founder Rod Wheeler fashioned out of chicken wire and foil from his cabin in Yukon, north west of Canada.
The company extended its product offering to include a range of microwave and digital products for terrestrial and wireless applications, and in 2011 it acquired Sinclair Technologies to add antennas and RF conditioning products to the mix.
To date it has sold more than 2.5 million products in 87 countries, and posted around US$42m in 2012 revenues, compared with approximately US$38m the year before.
