SGX-Mainboard and UK AIM-listed Global Invacom announced today that it will be acquiring Skyware, a US-based satellite terminals manufacturer, for up to US$11.6 million.
According to its media statement, the company will issue approximately US$6.6 million worth of treasury shares; and enter into a cash 'earn-out' model, to pay Skyware up to a maximum of US$5 million.
The acquisition is subject to approval by SGX and Global Invacom shareholders at an upcoming extraordinary general meeting (EGM).
According to Global Invacom, this acquisition - which it claims to be its largest to date - will help the company to strengthen its position in the Satellite Communications (Sat Comms) equipment market.
Through this acquisition, Global Invacom will add Skyware as its U.S. manufacturing presence to its existing Sat Comms production footprint in Asia (China, Israel and Malaysia) as well as the United Kingdom.
"This is a very exciting addition to the Group which enhances our position as a leader in the global Sat Comms market. The acquisition not only strengthens our presence in the U.S., but also complements our existing international footprint by bringing a new suite of products and expertise to address the global demand for Internet connectivity," said Tony Taylor, Executive Chairman of Global Invacom.
Upon completion of the acquisition, Global Invacom will enter into a service agreement with Gregory Jones, Partner of Edgewater Funds, whereby he will be appointed to the Board as a Non-Executive, Non-Independent Director.
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