Fresh from a reverse takeover, SGX-listed Global Invacom has announced its first acquisition - a UK-based microwave company that supplies to the military and marine industry.
Global Invacom Group said it will acquire 100 percent The Waveguide Solution (TWS), which specialises in microwave waveguide transmission. Valued at £4.75 million, or about S$9.27 million or US$7.4 million, the acquisition is expected to strengthen Global Invacom's foothold in the satellite communications business, particularly in the Asia Pacific where it has recently gained a major presence.
Global Invacom entered the Asia Pacific market big through the merger of Global Invacom Holdings with Radiance Group, which was listed in the Singapore Exchange Securities Trading Limited (SGX). The acquisition was completed only last month.
Global Invacom is a UK company that specialises in satellite communications equipment while the SGX-listed Radiance Group was an electronics manufacturing services provider with two manufacturing facilities in China. Radiance recently changed its name to Global Invacom to reflect the takeover.
In a filing with SGX, Global Invacom said the acquisition is expected to boost its growth opportunities in the satellite communications industry sub-sector and will bring in "prestigious customers".
"Global Invacom has outlined a strategy to increase its technological capability while seeking to enlarge its marketing presence in the Asia Pacific. TWS fits in snugly with our strategy and will offer synergies as well as access to new subsectors in the satellite communications industry," said Tony Taylor, executive chairman and chief executive officer, Global Invacom.
Global Invacom said it will pay £3.51 million (US$5.5 million) in cash for the acquisition, while the rest will be settled by way of new Global Invacom shares for TWS.
Upon completion of the acquisition, TWS managing director Michael Jackson will serve as consultant for Global Invacom, while TWS operations director Benjamin Cartridge will be employed by Global Invacom. However, the filing did not indicate what job Cartridge will be doing in the new company.
TWS has manufacturing facilities in Newton Abbott, Devon. It recorded revenue of £4.13 million (US$6.5 million) in its latest financial year ended 29 February 2012.
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