Aerospace and defence systems specialist Ultra Electronics is to acquire Giga Communications, a UK-based satellite communications equipment developer, for an initial cash consideration of £12.4m.
As part of the deal there is also a potential earn out…
Aerospace and defence systems specialist Ultra Electronics is to acquire Giga Communications, a UK-based satellite communications equipment developer, for an initial cash consideration of £12.4m.
As part of the deal there is also a potential earn out of up to £24.6m based on Giga’s earnings growth over the next two years. Ultra stated that it will finance the acquisition via existing facilities and that it is expected to be earnings enhancing in 2012
Giga is currently owned by its founder, Chris Lay, and two other private shareholders. Lay will remain with the business post-transaction. On closing, Giga will continue to operate from its existing facilities as a bolt-on acquisition within Ultra’s Tactical & Sonar Systems Division and will be known as Ultra Electronics, GigaSat.
Giga develops fixed, mobile and transportable satellite earth stations and recently received type approval to operate terminals on both the US Defense Satellite Communications System and the Wideband Global Satellite and has received contracts from the US DoD.
Commenting on the acquisition, Rakesh Sharma, chief executive of Ultra, said:
“I am pleased to have been able to bring Giga into the Group. Giga has an excellent position in the satcom market and this acquisition fits Ultra’s strategy of being able to offer both terrestrial and satellite communication links. Giga operates in both the military and commercial domains and has a very broad market reach.”
