Elektrobit Corp. (EB) and Anite plc have signed an agreement under the terms of which EB agrees to sell its Test Tools product business to Anite. The Transaction comprises the sale of the shares of EB's subsidiary Elektrobit System Test Ltd., a company based in Oulu, Finland, and certain related other assets in the USA and China.
EB's Test Tools product business provides radio channel emulation tools and testing solutions for the development of the wireless technologies and is a part of EB's Wireless Business Segment employing a total of 54 people in Finland, USA and China.
The cash consideration payable to EB by Anite as a result of the Transaction is €31.0 million on a cash and debt free basis, subject to a post completion adjustment based upon the level of net working capital and cash and debt in the Test Tools product business on January 31, 2013. Part of the common cost base of the Wireless Business Segment previously allocated for the Test Tools product business is not included in the Transaction and will remain in the Wireless Business Segment for the time being.
Closing of the Transaction has been agreed to take place on January 31, 2013, subject to completion of customary closing events, such as payment of the cash consideration.
Jukka Harju, CEO of Elektrobit Corporation, commented, "The market for EB's Test Tool products, radio channel emulators, is a global niche market where our Propsim products have gained a strong position over years. However, as the only test product line of EB, the Test Tools business offered only limited long term growth opportunities for EB. For EB, this transaction gives good cash consideration for the business, a significant non-recurring profit and cash increase, and it further strengthens EB's financial position.
“After this divestiture, our Wireless Business Segment is more focused in the markets which offer EB larger long term growth potential. EB continues to develop and offer products and product platforms for the defense, public safety and industrial markets, and R&D services and customized solutions for the wireless communications markets and other markets using wireless connectivity in their devices. We believe Anite has the right capabilities and is very committed to further developing the Test Tools product business as part of a broader range of its testing solutions."
Christopher Humphrey, Anite's Chief Executive, stated, "The increasing market demand for more integrated wireless laboratory test solutions makes Anite a natural fit for Propsim. Anite's established market and technology leadership, and its substantial global sales and support footprint, combined with the acknowledged expertise and market leading channel emulation solutions in the Propsim brand, creates a dedicated supplier with a more complete product offering. The product line we are buying is an excellent addition and a good fit with Anite's Handset Testing business and the acquisition is expected to be enhancing to adjusted earnings.”