El of a deal as Sepura agrees $144m for Spanish business
Sepura, the Cambridge-based market leader in digital communications, has agreed to buy Spanish voice and datacoms company Teltronic for €127.5 million ($144m).
The deal provides the UK business with a ready-made route into Latin America and the United States via Teltronic’s existing footprint and expands its technology capability.
CEO Gordon Watling (pictured) said the acquisition reinforces Sepura's position as a leading global provider of critical communications solutions.
Teltronic provides complete wireless voice and data communications solutions, including infrastructure, terminals and software – principally for customers in the public safety, transportation and utility sectors.
Its business covers the entire Professional Mobile Radio (PMR) value chain, including network infrastructure, terminals and command and control centres.
The company operates in more than 50 countries serving customers based primarily in Latin America, North America and the EMEA region.
Sepura has agreed to acquire the entire issued share capital of Teltronic for €127.5m – to be financed by the partial draw-down under its new debt facilities of €120 million and the net proceeds of a fully underwritten share placing.
Teltronic generated revenue of €62.9m and adjusted operating profit of €8.4m for the yearto December 31, giving a 13.4 per cent adjusted operating profit margin.
This represented 29.7 per cent and 59.7 per cent year-on-year growth for revenue and adjusted operating profit, respectively, over the year.
Juan Ferro, currently CEO of Teltronic, will lead the enlarged systems and network business of Sepura, along with his senior team.
Gordon Watling said: “This is a highly complementary and transformational acquisition which will be immediately earnings enhancing.
It brings together two of the market's growing players to create a market leading digital Professional Mobile Radio company, with a broader offering and significantly enhanced capabilities.
“Teltronic's business will diversify our geographical reach, growing our footprint in Latin America and enhancing our existing presence in North America, specifically the US; expanding and diversifying our revenue streams accordingly.
“As the number and scale of digital radio networks around the world increases we will have the breadth of portfolio and financial strength to compete for significant new contracts at a high level.”