06.14.2011 10:10 AM
Vislink Acquires Gigawave for US$6 Million
Hungerford, U.K.: Vislink recently announced that on it acquired the entire issued share capital of Gigawave Ltd. for a cash consideration of £3.75 million (US$6 million).
Based in Colchester, Essex, U.K., Gigawave is privately owned individual shareholders and employs 87 people. The company designes wireless camera, microwave and antenna products for the broadcast market, and is said to have a “particular strength” in on-board applications for motorsport events. Vislink said Gigawave will complement and broaden its capabilities in terms of engineering, product portfolio and geographic reach.
Gigawave will be integrated into Vislink’s U.K. operations. Gigawave’s founder and existing managing director, Henry Barczynski, MM will serve as chief marketing officer reporting to the chairman and chief executive, John Hawkins.
For the financial year ended April 30, 2010, Gigawave generated audited sales of £12.53 million (US$20.3 million) and a loss before tax of £0.97 million (US$1.6 million). As of April 30, Gigawave had audited gross assets of £5.32 million (US$8.3 million). For the year ending April 30, Gigawave generated unaudited sales of £10.1 million (US$16.4 million), an unaudited loss before tax of £0.43 million (US$698,000) and had unaudited gross assets of £4.87 million (US$7.9 million).
Under the terms of the acquisition agreement, an initial consideration of £1.75 million (US$2.84 million) was paid on completion June 2, 2011. Vislink also repaid shareholder loans of £0.4 million (US$649,000) on completion. Deferred consideration of £1.0 million (US$1.62 million) is payable on each of the first and second anniversary of completion.
The initial consideration was paid in cash, financed out of existing cash balances. Deferred consideration will also be paid in cash. The board expects the acquisition to be earnings enhancing in its first full year.
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