7 Layers to be sold for £11.5 million
TTP Communications and 7 Layers AG have agreed to sell their test and certification joint venture, 7 layers UK Ltd, to SGS UK for an estimated £11.5 million.The proceeds of the all cash transaction will be divided equally between the two owners, with TTP Communications using its cut of around £5.7m to fund ongoing development programmes within its subsidiary TTPCom Ltd.
7 layers UK offers third-party test services for the designers and manufacturers of GSM, GPRS and 3G products and modules.
The sale comprises the issued share capital of 7 layers UK and is valued at £10.5m plus £0.9m net cash.
On completion, which is subject to the approval of the German Federal Cartel Office and expected by the end of the month, the managers of 7 layers UK are expected to remain in their current positions.
Profit after taxation of 7 Layers UK for the year ended March 31 was £909k.
Gross assets were £5.05m and net assets amounted to £2.865m.